14 June 2013 21:04 [Source: ICIS news]
NEW YORK (ICIS)--The US paraxylene (PX) June contract price was fully settled at a rollover from May, in line with the PX Asian Contract Price (ACP) and current spot Asia levels, sources said on Friday.
The US PX monthly contract typically follows trends in the PX ACP. For June, the PX ACP was settled at the same price as the April ACP. There was no major settlement for the May ACP.
The US PX June contract price remains at 72 cents/lb ($1,587/tonne, €1,190/tonne) DEL (delivered).
Though seasonal demand has picked up for the summer in the downstream polyethylene terephthalate (PET) bottle resin sector, demand has not been as robust as market players expected it would be.
Likewise, demand for co-product MX is soft.
A PX market player who expected the US PX contract to decline for June said that another factor that could drive the price down is a disconnect in the relationship between US PX and the PX ACP in recent months.
For instance, the US contract was settled later than usual in May on lack of direction from the unsettled ACP in that month. The 72 cents/lb DEL May US price was slightly down from April.
Meanwhile, US PX spot prices in the week that ended on 14 June were notionally flat at 63 cents/lb FOB (free on board) on the back of softer Asian PX spot prices.
PX is primarily used to make purified terephthalic acid (PTA), an intermediate chemical used in the production PET. A major outlet for PET is in the production of plastic bottles for beverages.
Major US PX producers include BP Chemicals, ExxonMobil Chemical, Chevron Phillips Chemical and Flint Hills Resources.
($1 = €0.75)
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