Total, Koch end US MX contract arrangement - sources

02 March 2011 00:23 Source:ICIS News

HOUSTON (ICIS)--A major buyer and seller have ended their mixed xylene (MX) contract arrangement, market participants said on Tuesday.

Market sources said Total, which sells MX to Koch Industries, will no longer negotiate an MX contract settlement. The MX contract, which applies to 5211-grade material on a free on board (FOB) US Gulf (USG) basis, typically settles on the same day as benzene contracts.

March benzene contracts settled on Monday at $4.39/gal ($1,314/tonne, €946/tonne) FOB.

The February MX contract settled at $3.30/gal FOB, up 19 cents from January because of stronger spot levels and volatile energy prices.

The market’s other MX contract is between BP and other MX producers for 843-grade material, which typically settles after 5211 contracts and at a lower price.

The March 843-grade contract was heard to have settled on Tuesday at $3.64/gal FOB, but confirmation was still pending.

It was not known if Total or Koch will establish a new MX contract agreement, or if they will look for new companies with which to establish contract business.

Neither Koch nor Total was immediately available for comment on the MX contract agreement.

($1 = €0.72)

For more information on mixed xylenes go to ICIS chemical intelligence

By Brian Balboa