US PX June contract to decrease following lower ACP

01 June 2012 18:45  [Source: ICIS news]

MIAMI, Florida (ICIS) --The US paraxylene (PX) June contract is projected to decrease by 3-4 cents/lb ($66-88/tonne, €53-71/tonne), following price decreases in Asia, market participants said on Friday.

According to a major producer, the decrease will be following the lower PX Asian Contract Price (ACP) for June.

One buyer said the key drivers for the lower PX June contract are lower crude values and Asian naphtha prices.

The US PX contract price is usually settled in the first half of the month to which it applies, with the PX ACP providing a guide to price direction.

The June PX ACP was settled at $1,355/tonne CFR Asia, down by $195/tonne from the May price of $1,550/tonne CFR Asia.

The US PX May contract settled at 76.50 cents/lb, down by 2.00 cents/lb from April.

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 = €0.81)

By: Blanca Venegas

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