18 March 2013 11:23 [Source: ICIS news]
LONDON (ICIS)--European March dimethyl terephthalate (DMT) reference prices fell by €6/tonne on Friday to €1,073-1,114/tonne, in line with upstream paraxylene (PX), according to an assessment by ICIS.
This is only the second time the PX and consequently the DMT price has failed to rise since August 2012.
The March European paraxylene (PX) contract has been confirmed at €1,250/tonne ($1,623/tonne) FD NWE, down €10/tonne from the previous month, as an initial settlement 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.
The first-quarter contract price for methanol, a secondary feedstock for DMT, is €370/tonne FOB (free on board) Rotterdam, up by €30/tonne from the fourth quarter.
Preliminary discussions for the settlement of the second quarter contract price have taken place, with most players anticipating an increase in the region of €15-30/tonne.
The DMT prices were assessed on a free delivered northwest Europe basis.
($1 = €0.77)
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