28 February 2012 07:36 [Source: ICIS news]
SINGAPORE (ICIS)--Major paraxylene (PX) end-users have counter-bid the March PX Asian Contract Price (ACP) at $1,550-1,580/tonne (€1,163-1,185/tonne) – atleast $140/tonne below what producers are seeking - citing a bleak outlook for the downstream polyster yarn and filament sector.
The counter-bids are against nominations made by JX Nippon Oil & Energy at $1,690/tonne CFR (cost and freight) ?xml:namespace>
“We see continued poor demand for purified terephthalic acid (PTA) all the way to end-March or early-April as inventory levels are high in the downstream polyester sectors,” said a major PTA maker.
Demand for polyester farms and filaments have remained weak since end-January with most weavers and spinners still digesting pre-Lunar New Year inventory stockpiles.
Polyester inventory levels in
Some PX traders are predicting a $1,620-1,650/tonne CFR Asia settlement for the March PX ACP.
“These are the prices at which end-users have bought March shipments, they should be able to accept contract prices at such levels as well,” they said.
The February PX ACP was fully settled at $1,590/tonne CFR Asia while the March PX ACP will be settled on 29 February.
Additional reporting by Judith Wang
($1 = €0.75)
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