Asia PX market faces “non-settlement” for October ACP

07 October 2011 05:29  [Source: ICIS news]

SINGAPORE (ICIS)--Asian paraxylene (PX) market players are facing a potential “non-settlement” for the benchmark October Asia Contract Price (ACP), market sources said on Friday.

“Continued negotiations during the EPCA failed to yield any possibilities for a settlement,” said a source familiar with the negotiations.

A sole settlement between Japan’s Idemitsu Kosan and China’s Zhejiang Yisheng Petrochemicals was heard at $1,620/tonne (€1,198/tonne) CFR (cost & freight) Asia.

Other key buyers said the settled price is too high as the margins for the downstream purified terephthalic acid (PTA) producers are thin.

ExxonMobil and South Korea’s S-Oil are looking to settle their October PX ACP at $1,620/tonne CFR Asia and $1,630/tonne CFR Asia respectively, but continue to face resistance from key buyers, according to sources.

Japan’s JX Nippon Oil & Energy and Idemitsu Kosan have ceased their ACP negotiations with their respective customers and are looking towards published spot prices for contract settlements.

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By: Bohan Loh
+65 6780 4359

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