Major end-users counter March PX ACP at $1,550-1,580/tonne

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) Asia, ExxonMobil at $1,700/tonne CFR Asia, Idemitsu Kosan at $1,740/tonne CFR Asia and S-Oil at $1,690/tonne CFR Asia.

“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 China have climbed to as high as 18-30 days’ worth, compared with 4-13 days before Lunar New Year, according to polyester producers.

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)

By: Bohan Loh
+65 6780 4359

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