02 April 2013 15:47 [Source: ICIS news]
LONDON (ICIS)--An initial April European orthoxylene (OX) contract was agreed at €1,128/tonne ($1,446/tonne), one consumer and one producer said on Tuesday, down €20/tonne from the previous month.
While sentiment had been increasingly positive throughout March, with availability balanced and demand looking healthy, weaker global pricing weighed down on the European market.
Asian OX prices have steadily lost ground for the last four weeks on bearish upstream conditions, while players in the US market are braced for a decrease on the monthly contract in April owing to softer fundamentals.
Additionally, there are some concerns still surrounding the construction industry in Europe, with poor demand so far this year partially driven by the inclement weather.
Some players do not expect offtake from construction to show any meaningful signs of recovery in 2013, with the wider macroeconomic instability also keeping potential activity limited as players exercise caution.
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
Further confirmation from other players is pending.
($1 = €0.78)
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