04 July 2012 13:25 [Source: ICIS news]
LONDON (ICIS)--The European orthoxylene (OX) contract for July has been confirmed at €1,045/tonne ($1,323/tonne), sources said on Wednesday, down by €115/tonne from last month as the initial settlement received further support from players this week.
The producer involved in the initial settlement said that the decrease was in line with prices in other regions, and also took into account the shifting supply/demand balance.
After reaching a record-high in April because of limited availability, European prices have gradually eased off as the year progressed.
Another seller agreed that while demand for OX is still healthy, availability had improved over the course of June as several turnarounds came to an end.
The seller added: “We have still had some panicky calls from customers looking to bring forward deliveries, however, so there is still perhaps some tightness at least in Germany.”
With two European suppliers going into turnaround over September and October, there is also speculation that the domestic market could tighten again later in the year.
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.79)
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