29 October 2013 11:57 [Source: ICIS news]
LONDON (ICIS)--Slower downstream demand and bearish global sentiment is likely to weigh down on the European orthoxylene (OX) market in November, sources said on Tuesday.
OX prices in the US are around $1,340/tonne (€965/tonne), and the market is expected to see further decreases into the fourth quarter on the back of softer pricing for feedstock mixed xylenes (MX).
Asian OX prices had been on a sustained downward trajectory since August 2013 amid healthy availability in the Chinese market and weak downstream demand from the phthalic anhydride (PA) sector.
While the market appears to have stabilised ahead of November, trading activity remains limited and the outlook for the rest of 2013 is uncertain. PA producers have been purchasing more following weeks of remaining at the sidelines, which has helped ease the downward trend.
European PA demand is facing its seasonal downturn in the fourth quarter, with some imports from Asia also helping to push prices down.
“I think the OX contract will come down for November,” said one trader. “But the decrease won’t be as sharp as it will be for paraxylene (PX).”
The European October OX contract was settled at €1,040/tonne on an FD (free delivered) NWE (northwest Europe) basis, down €10/tonne from the previous month.
($1 = €0.72)
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