Europe March PX settlement confirmed €75/tonne lower

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

By: Rhian O'Connor
+44 208 652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index