US June OX contract projected to decrease

05 June 2012 22:41  [Source: ICIS news]

MIAMI, Florida (ICIS)--The June contract price for US orthoxylene (OX) is projected to move down by 3.00-5.00 cents/lb ($66-110/tonne, €53-88/tonne) from the May price of 68.00 cents/lb, sources said on Tuesday.

According to a buyer, June OX prices have been heard lower in Asia and Europe, and the US is expected to follow.

Other sources previously attributed the projected lower prices in the US to falling feedstock prices and soft demand.  

The OX contract usually settles early in the month. However, contract participants continue to discuss the amount by which the June OX contract will decrease.

OX is primarily used to make phthalic anhydride (PA), a key intermediate in the production of plasticisers, which are used to make products such as flexible polyvinyl chloride (PVC).

Major US OX producers include ExxonMobil Chemical and Flint Hills Resources.

($1 = €0.80)

By: Blanca Venegas

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