20 May 2014 12:02 [Source: ICIS news]
LONDON (ICIS)--An initial Europe paraxylene (PX) contract for April has been agreed at €900/tonne free delivered (FD) northwest Europe (NWE), a rollover from the previous month, sources said on Tuesday.
The settlement was confirmed by one producer and one buyer.
The market was expecting a rollover or small decrease, on the back of shutdowns in the downstream purified terephthalic acid (PTA) industry, and general demand weakness.
However, the seller said: “Asian numbers are much stronger, [we look in the] context of the Asian spot average.”
“The buyer agreed, it was a fair compromise,” it added.
Going forward, both buyers and sellers worry about the negotiating process and the thinness of the market, both in Europe and in Asia.
“Two of big PTA producers are down and not negotiating. [There are] not a lot of parties negotiating,” said the seller.
”[Asia has] now bounced back a bit, but all say [it is] based on some few transactions. [The] majority holds out on buying,” said a trader.
Further confirmation from other players is pending.
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