01 August 2011 00:00 [Source: ICB]
The initial August European propylene contract, which rolled over from July's €1,130/tonne, has failed to find support among some contract consumers. They argue it is unacceptable, and instead wanted a reduction.
Europe's butadiene (BD) monthly contract price for August has been agreed at €2,525/tonne FD NWE (Northwest Europe), marking a €25/tonne rise on last month. Although supply improved in July and the seasonal slowdown took effect, with spot prices easing, there was still a wide gap between spot and contract figures.
Paraxylene (PX) makers are eyeing a hefty $200-280/tonne price rise for August's Asia Contract Price. Three producers nominated $1,600, $1,650 and $1,680/tonne CFR Asia - up from $1,400/tonne in July. A source from one seller said an increase was mooted because of expectations for a tight supply-demand balance in August, because of an outage and technical problems at two sites.
US orthoxylene (OX) producers have nominated August contract increases of 10.50 cents/lb ($231/tonne) at 70 cents/lb FOB US Gulf. A buyer noted the higher price would be fueled by rising mixed xylene (MX) costs, but did not rule out a contract drop.
The spot methanol barge price in the US has climbed to its highest level so far this year, raising speculation over the direction of the imminent August contract.
Spot values leapt by 10% in July and as numbers reached 120 cents/gal, buyers suggested contracts could also climb. The settlement has rolled over for six successive months at 126-128 cents/gal. An unplanned outage in Trinidad, combined with higher Chinese prices, supported a hike.
The chemical prices will next be published on August 15, 2011.
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