31 January 2013 15:46 [Source: ICIS news]
LONDON (ICIS)--An initial February European orthoxylene (OX) contract was agreed at €1,133/tonne ($1,531/tonne), one seller and one buyer said on Thursday, a €40/tonne increase from the previous month.
Following a January rollover, the seller argued that some upward movement was needed to align the European market with global price levels.
“The January price was €100/tonne below the US number,” the seller said. “Prices in Asia have also been firming since the start of the year.”
While there had been some initial concerns about domestic demand so far in 2013, several players said that offtake is looking increasingly healthy into February.
There is also talk that one producer is not running as hard as previously predicted, while another refinery is said to be going into turnaround next month. This is expected to keep the European market tight in February.
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.74)
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