US OX July contract settles 5 cents/lb lower

03 July 2012 22:54  [Source: ICIS news]

MIAMI, Florida (ICIS)--The US orthoxylene (OX) July contract has been settled at 59.00 cents/lb ($1,301/tonne, €1,028/tonne), lower by 5.00 cents/lb from June, market participants said on Tuesday.

A buyer said the decrease in the June contract comes after weaker OX prices in Asia and demand slowdown in China.

The OX contract usually settles after the mixed xylene (MX) contract has been concluded. However, confirmation on the US MX July contract is still pending.

According to an MX buyer, the MX June contract could not be settled and was defaulted back to an alternate mechanism with prices heard in the $3.65/gal range.

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 = €0.79)

By: Blanca Venegas

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