20 October 2011 14:03 [Source: ICIS news]
LONDON (ICIS)--The European October paraxylene (PX) contract has settled at €1,210/tonne ($1,681/tonne), up €20/tonne from the September contract price, two producers and two consumers said on Thursday.
“I can confirm that €1,210/tonne is the contact price for October. I don’t expect to see much change in the [PX] market during November or December. Demand for PTA (purified terephthalic acid) is down and PX is getting longer,” the buyer said.
While another major producer of PX recognised €1,210/tonne as its market price for October, a European seller firmly disputed the contract price and how it was agreed.
The producer said: “We will not follow the contract price because we think the process is not right and we are upset.”
“There was no price then suddenly there was a number, but we did not have a chance...it was just calculated on Asia with an exchange rate. The exchange rate used should have been an average for the month,” the producer concluded.
The European PX contract, on a free delivered (FD) northwest Europe (NWE) basis, typically settles soon after an agreement has been reached in Asia for the ACP (Asian Contract Price), however, this has been seriously delayed.
On Wednesday, the first settlement in Europe was confirmed between a producer and consumer, although the producer said the price was already in the market on Monday.
The producer said: "The settlement all happened quite quickly and easily. Everyone had given up on waiting for a settlement in Asia. The contract price was based on a best guess of what will happen in Asia.”
The buyer said: “The market has agreed €1,210/tonne and we will follow this price. The market is balanced and there are no problems with availability.”
A second producer also verified €1,210/tonne as its October contract price.
($1 = €0.72)
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