20 April 2011 10:17 [Source: ICIS news]
SHANGHAI (ICIS)--Spot Asian paraxylene (PX) was traded at a discount on Wednesday – the first time it happened in six months – because of weak end-user demand, market players said.
A cargo for May loading was heard sold by a southeast Asian player using 50% Asia Contract Price (ACP), 50% spot average of published cost and freight (CFR) Taiwan prices, and a discount of $2-3/tonne (€1.4-2.1/tonne) on a free on board (FOB) southeast Asia basis.
The last time that spot PX was traded at a discount was in mid-October 2010 when PTT Aromatics and Refining sold a second-half November loading cargo to LG International using 50% ACP, 50% spot average of published CFR Taiwan prices, and a discount of less than $5/tonne on an FOB Thailand basis, according to data from ICIS.
Spot PX cargoes were sold at premiums exceeding $20/tonne on an FOB southeast Asia basis in the week, following the 11 March Japan earthquake. However, weak buying appetite among end-users has pushed valuations into discounts, market players said.
Meanwhile, spot PX outright prices were hovering at around $1,575-1,585/tonne CFR Taiwan and/or China Main Port (CMP), down another $15/tonne from the previous day as buying appetite weakened among end-users who had already secured sufficient volumes for May deliveries.
($1 = €0.70)
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