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



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