Initial Europe December OX contract agreed down €27/tonne

05 December 2012 10:42  [Source: ICIS news]

EurosLONDON (ICIS)--An initial European December orthoxylene (OX) contract was agreed at €1,093/tonne ($1,438/tonne) on Wednesday, a reduction of €27/tonne from the previous month, one seller said.

A decrease had been widely expected, as demand from key end-use markets softens ahead of the holiday period.

“It’s that time of year,” said the seller. “Things start to slow down.”

Players in the downstream European phthalic anhydride (PA) market have struggled with margin erosion, amid slower than usual demand from the coatings and construction sectors throughout 2012.

Despite the decrease in euro terms, the number actually represents a $2/tonne increase from November, owing to the weaker US dollar.

The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis. Further confirmation from other players is pending.

($1 = €0.76)


By: Truong Mellor
+44 208 652 3214



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