02 October 2012 14:30 [Source: ICIS news]
LONDON (ICIS)--An initial October orthoxylene (OX) contract has been settled at a rollover of €1,140/tonne ($1,462/tonne), one seller and one buyer said on Tuesday.
Following a €50/tonne rise in September, the European market is currently described by players as steady. Demand is running at a reasonable level, said one buyer, but the wider economic uncertainty remains an issue.
As the fourth quarter approaches, key end-use markets such as construction are likely to slow down, while many consumers will start to think about end-of-year inventory management, both of which may have an adverse effect on purchasing for the rest of the year.
Nevertheless, with Brent still above $110/bbl, fundamentals remain bullish overall. One producer felt that downstream demand was improving, although other sources believed that derivative prices were being supported by limited availability rather than any upturn in demand, which remains softer than in the same period last year.
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis. Further confirmation from other players is pending.
($1 = €0.78)
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