US September OX contract to roll over – buyer

05 September 2012 21:58  [Source: ICIS news]

MIAMI (ICIS)--The US September orthoxylene (OX) contract may roll over, a buyer said on Wednesday.

According to the buyer, US OX producers are targeting increases in September based on higher upstream mixed xylene (MX) prices. However, soft demand and price decreases seen in other regions, such as Europe, indicate that September OX prices in the US could possibly roll over.

The August OX contract settled at 65 cents/lb ($1,433/tonne, €1,146/tonne), up by 6 cents/lb from July.

The OX contract usually settles early in the month, after the MX contract has been finalised.

The US MX August contract settled at $3.70/gal, higher by 6 cents/lb from July.

Confirmation for the September MX contract is still pending.

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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