07 November 2012 12:04 [Source: ICIS news]
LONDON(ICIS)--The European November orthoxylene (OX) contract was confirmed at €1,120/tonne ($1,436/tonne) on Wednesday, a reduction of €20/tonne from the previous month, as the initial settlement received further support from the market.
Despite several turnarounds currently keeping supply in ?xml:namespace>
Sellers agreed that balanced supply helped to mitigate any downward movement on pricing this month.?xml:namespace>
One seller felt that contractual demand remains solid, and that while activity was tailing off towards the end of the year as players manage inventory levels, this has been largely predicted and accounted for.
“There is perhaps less consumption, but strong feedstocks and tight supply helped to counteract this,” said another seller. “The number was a compromise between the parties involved.”
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
There was still no news regarding the European paraxylene (PX) contract, with one producer confirming that negotiations were underway this week.
However, the failure of players in Asia to so far come to an agreement in November has held up talks in Europe, as the market struggles to determine a sense of direction.
($1 = €0.78)
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