Dimethyl terephthalate (DMT) monthly reference prices fell from February to March, and again significantly from March to April. This was in line with calculations made with upstream monthly paraxylene (PX) and quarterly methanol.
From an average of €1,099.50/tonne FD (free delivered) NWE (northwest Europe) in February, DMT reached €1,005.50/tonne in April, and May looked as if it would roll over.
As PX players failed to reach an agreement for March on the Asian contract price, this in turn stalled the negotiations in Europe, as buyers waited to see where the market stabilised. Eventually, PX decreased by €10/tonne between February and March, and experienced a far greater drop to €1,120/tonne in April.
With very little activity was seen throughout the month, players did not expect any significant change for May.
Methanol prices increased by €20/tonne between the first and second quarters, landing at €390/tonne FOB (free on board) Rotterdam for the Q2 contract. The settlement caused controversy. A handful of buyers objected to the increase, citing the increased differential between European and Asian prices that could damage derivative sales and, therefore, reduce European methanol requirements.
Most suppliers, on the other hand, felt the contract price should be determined purely by supply and demand fundamentals, and, as such, should have been higher.
Updated to mid-May 2013