US PX December contract price down 6.5 cents/lb on weak demand
07 December 2011 21:47 [Source: ICIS news]
HOUSTON (ICIS)--The US December paraxylene (PX) contract dropped by 6.5 cents/lb from the previous month as a result of weakened demand and other factors, market participants said on Wednesday.
The December contract for ?xml:namespace>(PX) was settled at 67.5 cents/lb ($1,488/tonne €1,116/tonne) DEL (delivered) USG (US Gulf), a producer and a buyer said. The November contract settled at 74 cents/lb.
A major buyer said the decline was a result of weak US PX demand, falling prices in Asia, end-of-year inventory de-stocking and a sluggish economy.
Three Asian producers settled the December PX Asia Contract Price (ACP) at $1,390/tonne CFR (cost and freight) Asia. The price is down by $110/tonne from the November PX ACP of $1,500/tonne CFR Asia.
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.
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 = €0.75)
For more on PX visit ICIS Chemical Intelligence By: Blanca Venegas713-525-2653
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