12 April 2012 17:01 [Source: ICIS news]
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LONDON (ICIS)--The European April paraxylene (PX) contract has settled at €1,225/tonne ($1,612/tonne) – a €43/tonne decrease from the March contract price, two producers and two consumers said on Thursday.
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
“We agreed the European contract price for PX at €1,225/tonne," a buyer said.
A producer said the agreement on the contract price came a little later than usual, because of holidays across Europe and recent industry events.
The European contract price typically settles soon after an agreement has been reached in Asia. Although the Asian Contract Price has not yet fully settled, agreements were made last week at $1,585/tonne (€1,205/tonne) CFR (cost and freight) Asia.
“We are happy that [the European contract price is] lower than March,” another buyer said. “It will help us to remain competitive.”
The buyer said demand is lower than it was at the same time in 2011, adding that prices higher than this would be difficult to pass on to customers in derivative markets.
In the past four weeks, despite some fluctuations, spot PX prices have risen, and are now heard in a range of $1,525–1,550/tonne FOB (free on board) Rotterdam.
PX is the largest volume isomer of the mixed xylenes. Around 98% of PX is consumed in the polyester chain, mainly in the production of fibre, film and polyethylene terephthalate bottle resins, via one of two intermediates: purified terephthalic acid (PTA) or dimethyl terephthalate (DMT).
($1 = €0.76)
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