28 October 2011 11:38 [Source: ICIS news]
SINGAPORE (ICIS)--Players in the Asian paraxylene (PX) market are increasingly looking at price quotes for spot cargoes to ?xml:namespace>
Key customers of ExxonMobil were heard to have proposed using the average of published spot CFR (cost and freight)
Market sources said that ExxonMobil is selling its PX on an 80% ACP (Asia contract price) plus 20% spot CFR (cost and freight)
On Friday, spot PX prices were assessed at $1,530-1,540/tonne (€1,071-1,078/tonne) CFR Taiwan and/or CMP (
Aromatics major ExxonMobil is considered by most players as an important ACP negotiator. Negotiations between ExxonMobil and its key customers could not agree on a price for October contracts since end-September, market sources said.
Recent volatile swings in PX prices and the squeezed margins of the main downstream purified terephthalic acid (PTA) sector have been making negotiations difficult between buyers and sellers.
Chinese PTA major Zhejiang Petrochemicals has settled its October contracts with PX suppliers Idemitsu Kosan and S-Oil at $1,620/tonne, but the price was rejected by other players.
Other key buyers said that PTA producers generate very little margin from this PX price. September PX ACP was fully settled at $1,655/tonne.
However, there are also some players who feel that a settlement against published spot CFR Taiwan quotes is unfair.
“[Published] October prices are the valuation for November and first-half December physicals deals. It is not pricing in October physicals deals,” said a trader based in
The Asia PX market typically trades around four to eight weeks forward.
($1 = €0.70)
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