LONDON (ICIS)--European paraxylene market participants are confused by the split settlement for July, with a second settlement differing from the initial settlement, sources said on Tuesday.
Some in the market believe the new settlement seen last week is the correct number, and that the earlier settlement will be disregarded by the market.
“995 [€/tonne] is the settlement. We had the same situation a few months ago and the higher [initial] settlement was disregarded,” said one trader.
However, the buyer and seller involved in the initial settlement at €960/tonne both confirmed that they are sticking with this and did not intend to revise to €995/tonne.
In this environment buyers are confused with which settlement to follow, with some seeing it as a non-settlement.
“Talking to other trade magazines and other trade producers... consensus is that there is no other agreement so there is no final ECP [European contract price] settlement,” said the buyer.
“Knowing how PX contract is discussed I cannot see how PX in Europe can do anything else but hold now and await the major drop expected in Asia,” said a second buyer.
Some buyers expect to finally settle their July contract in parallel with an August number.
“People are saying they are trying to discuss August price linked to final July settlement,” said the first buyer.
However with the Asian contract price [ACP] not settling again for August many expect another late settlement of the European contract price.
“If there is no ACP then Europe settles late,” said a second PX trader.
Renee Lawrence contributed to this article