18 March 2013 11:12 [Source: ICIS news]
LONDON (ICIS)--Purified terephthalic acid (PTA) contract prices in Europe decreased by €7/tonne from February to March, sources said late on Friday.
According to calculations made with the upstream paraxylene (PX) contract price, the March PTA reference price has moved to €967-997/tonne FD (free delivered) NWE (northwest Europe).
"The March contract price for PTA has followed the path of paraxylene," a buyer confirmed.
The European March PX contract has been confirmed at €1,250/tonne FD NWE, down €10/tonne from the previous month, as an initial settlement from last week received further support from players.
While sources had initially predicted a small increase for Europe in light of an initial Asian settlement at $1,670/tonne CFR (cost and freight) Asia, a sharp drop in spot values in the region combined with general oil and energy volatility delayed European contract negotiations and added some downward pressure.
This is only the second time the PX and consequently the PTA price has failed to rise since August 2012.
The PTA market is described as long due to weak downstream PET demand. "We are waiting for any signs of seasonality in PET to pick up," a producer said.
($1 = €0.77)
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