Initial US PX October contracts settle at 2.5 cent/lb drop

19 October 2011 21:43  [Source: ICIS news]

HOUSTON (ICIS)--Initial October contracts for US paraxylene (PX) have settled at a 2.5 cent/lb decrease from the September price of 82.5 cents/lb, market participants said on Wednesday.

A major buyer said it had concluded an October contract price at 80 cents/lb ($1,764/tonne, €1,270/tonne) DEL (delivered) USG (US Gulf), but a producer said the settlement had not yet been endorsed by all market participants.

The partial price agreement was reached following prolonged negotiations, which were hindered by the absence of a clear settlement for the October Asian Contract Price (ACP).

The US contract price is usually settled in the first half of the month to which it applies, with the ACP providing a guide to price direction.

The movement of the US PX contract had remained within $50/tonne of the ACP delta since early 2010.

PX is used primarily to make purified terephthalic acid (PTA), an intermediate chemical for polyethylene terephthalate (PET), which is commonly used for plastic bottles.

Major US PX producers include BP Chemicals, ExxonMobil Chemical, Chevron Phillips Chemical and Flint Hills Resources.

($1 = €0.72)

For more on PX visit ICIS chemical intelligence

By: Samuel Weatherlake
+44 20 8652 3214

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