Europe November PX contract confirmed at €1,055/tonne

LONDON (ICIS)–The European paraxylene (PX) contract has been confirmed at €1,055/tonne ($1,407/tonne), down €53/tonne from the previous month, as the initial settlement heard earlier in the month received further support from buyers and sellers on Thursday.

The contract was agreed on a free delivered (FD) northwest Europe (NWE) basis.

A decrease had been expected, in line with a weaker Asian market and slower derivative demand in the fourth quarter.

However, there remains some opposition to the November settlement from European buyers, who felt the number should have come down lower in line with a weaker derivative landscape in Europe this month and some bearishness in the Asian spot market.

The failure of Asian players to reach an agreement for the November Asian contract price stalled discussions in Europe this month, as buyers and sellers waited for a clearer picture to emerge.

One trader also noted that the impact of the explosion at Total’s Antwerp site on the aromatics market in general has yet to be determined, which is also another factor helping limit any downturn on pricing at the moment.

($1 = €0.75)