US OX November contract may decline

16 October 2012 23:25  [Source: ICIS news]

HOUSTON (ICIS)--The contract price for US orthoxylene (OX) is expected to decline for November, market sources said on Tuesday.

Some sources said they were uncertain how much the decrease may be.

Other sources, however, said it is too early yet to anticipate the direction the November OX contract would take.

“It’s a little early to make projections on where the November OX contract may be headed. I have heard no reason for it to go short or long, and it just settled [for October],” said one market participant.

The US OX October contract was settled at a rollover from September at 67 cents/lb ($1,477/tonne, €1,137/tonne) FOB (free on board), as assessed by ICIS.

Meanwhile, US OX spot export prices were notionally higher by 1 cent/lb to 63-64 cents/lb in the week ended 12 October, based on higher Asian OX spot prices in the same week.

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 = €0.77)

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