08 March 2011 13:47 [Source: ICIS news]
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LONDON (ICIS)--The European March orthoxylene (OX) contract has settled up by €45/tonne from the previous month at €945/tonne ($1,313), producers and consumers confirmed on Tuesday.
“The increase was based on a combination of things, a tight market - though not as tight as paraxylene - and the wide gap between PX and OX prices,” a producer said.
“Some of the producers have problems and one German producer will shut down in the middle of this month. In preparation for this people are looking for volume,” the producer added.
Spot PX is currently valued at $1,780-1,800/tonne FOB (free on board) Rotterdam, surpassing levels recorded before the economic crisis, while spot OX is valued some $550/tonne lower at $1,230-1,250/tonne FOB Rotterdam.
“They [the producers] keep talking about the gap between spot paraxylene and orthoxylene,” said an OX buyer for the production of phthalic anhydride (PA).
The buyer confirmed that its March contract price moved up €45/tonne from February.
The initial OX settlement was agreed on Friday, on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.72)
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