Europe OX industry expects limited Aug contract price movement

29 July 2014 15:53 Source:ICIS News

LONDON (ICIS)--European orthoxylene (OX) participants expect a settlement this week with no major changes in pricing level, sources said on Tuesday.

“We have had one preliminary discussion. There are not a lot of changes. It’s too early to say which direction it will go. I don’t see a big change,” said one buyer.

“OX ….for August we see a rollover,” said one distributor.

The contract negotiations come against a backdrop of limited supply, especially in the south, with plant closures said to be ongoing in Italy and Portugal. In addition, the market is still said to be receiving limited Israeli supply following production problems earlier this year.

However, demand is also said to be weak with two big downstream manufacturers said to be in turnaround in August. The result is a market that is said to be balanced.

“Availability is there. Most is covered by contract, there is still some product available once in a while,” said the buyer.

Additional reporting Yana Palagacheva

By Rhian O'Connor