27 March 2014 11:22 [Source: ICIS news]
LONDON (ICIS)--The Europe paraxylene (PX) contract for March has been confirmed at €900/tonne, a decrease of €75/tonne from the previous month, as the initial settlement received further support from players on Thursday.
The strength of the downward movement could come as a surprise to many in the market who had expected decreases of €35/tonne or slightly more.
Weaker Asian pricing and very limited downstream values were cited as the reason for the downturn. The contract was said by a seller to reflect average Asian spot prices for March.
Looking ahead to April, market participants have mixed views, with one buyer expecting a stabilisation or even a small increase due to Asian prices recovering. One seller pointed out that summer usually saw a seasonal uptick in downstream polyethylene terephthalate (PET).
However other buyers were more bearish:
"Judging from the data, it's still going down in April...the recovery of MEG [mono-ethylene glycol] and PX won't happen before May or June, " said one buyer.
The contract was agreed on a free delivered (FD) northwest Europe (NWE) basis.
Additional reporting by Caroline Murray
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