07 February 2013 11:46 [Source: ICIS news]
LONDON (ICIS)--The European February paraxylene (PX) contract has been confirmed at €1,260/tonne ($1,703/tonne), up €15/tonne from the previous month, as the initial settlement received further support from players in the market on Thursday.
According to one seller involved in the settlement, the €15/tonne increase was a compromise between buyers and sellers, with the $60/tonne increase seen in the Asian contract price this month lending some upward pressure to Europe.
However, derivative demand in Europe remains poor, and downstream players are already struggling with squeezed margins and rising raw material costs.
“These increases are damaging to the market in the medium to long term,” one buyer said. “It is holding back any real demand recovery.”
Other consumers continue to question the influence of the Asian contract settlement process on the European market, as the dynamics of Asia are far removed from those of Europe.
The European contract was agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.74)
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