US PX October contract falls by 2.5 cents/lb in weaker market

21 October 2011 16:13  [Source: ICIS news]

HOUSTON (ICIS)--The October contract price for US paraxylene (PX) has been settled at 80 cents/lb, down 2.5 cents/lb from September, market participants said on Friday.

An initial price at 80 cents/lb ($1,764/tonne, €1,288/tonne) DEL (delivered) USG (US Gulf) was agreed on Wednesday, but sources said that not all market participants had accepted it.

By Friday, the price had been confirmed by two major producers and two major buyers.

The price agreement was reached after 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 = €0.73)

For more on PX visit ICIS chemical intelligence

By: Samuel Weatherlake
+44 20 8652 3214

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