04 November 2011 16:54 [Source: ICIS news]
LONDON (ICIS)--The European November paraxylene (PX) contract has settled at €1,120/tonne ($1,534/tonne), a €90/tonne drop from October, producers and consumers confirmed on Friday.
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
“I can confirm the contract is down by €90/tonne because of the drop in the Asian contract price and weaker than expected demand everywhere,” confirmed a producer.
While most consumers agreed €1,120/tonne was their November contract price, one major buyer said that it had yet to agree to a number.
“To be frank I have no intention to settle and I am waiting to see how the market situation will be,” the buyer said
In relation to the November settlement, a second producer had said: “The November number looks like it has been confirmed as a general settlement. I have heard that it has been agreed with three producers and three consumers now.”
The European PX contract price typically settles once an agreement has been made in Asia on the ACP (Asian Contract Price).
In Asia, the November PX ACP was agreed at $1,500/tonne CFR (cost and freight) Asia on Monday 31 October. ExxonMobil, Idemitsu Kosan and JX Nippon Oil & Energy concluded the benchmark price with their respective customers.
PX is the largest volume xylene isomer. Around 98% of PX is consumed in the polyester chain, mainly in the production of fibre, film and polyethylene terephthalate (PET) bottle resins, via one of two intermediates PTA or dimethyl terephthalate (DMT). A small amount of PX is used as a solvent and to produce di-paraxylene and herbicides.
($1 = €0.72)
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