10 October 2013 10:42 [Source: ICIS news]
LONDON (ICIS)--The European October orthoxylene (OX) contract has settled at €1,040/tonne ($1,405/tonne), a €10/tonne reduction from the previous month, as the initial settlement received further support from players on Thursday.
One supplier initially said it had confirmed the numbers with two of its customers ahead of the 47th annual European Petrochemical Association (EPCA) meeting in Berlin, Germany, held from 5-9 October; one customer said it had agreed the reduction with another producer. Another major consumer later confirmed it has settled October volumes at this level.
“Downstream plasticizer demand is stable at a reasonable level,” the consumer added.
There was an expectation that the European OX contract would see a reduction this month alongside upstream energy costs and weaker global markets, but with European availability balanced overall, this helped to mitigate any significant downtrend in pricing.
The Asian OX market has shown recent signs of weakness owing to oversupply in the Chinese market and weak plasticizer demand. Looking further ahead into 2014, there are concerns regarding demand from the key phthalic anhydride (PA) sector, as several PA producers have installed catalysts in an attempt to minimise production costs by enabling the facilities to utilise either OX or naphthalene as feedstock.
The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.74)
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