Europe MX prices rise despite weak fundamentals

Rhian O'connor

16-Sep-2014

LONDON (ICIS)–European mixed xylenes (MX) spot prices have seen a further rise this week, thanks to tight supply from producers, sources said on Tuesday.

Producers and traders alike saw higher FOB (free on board) prices for MX this week. The rises are somewhat surprising against a backdrop of weak demand.

“We get hardly any spot enquiries. If you want to move material you need to [offer cheap prices]. I have six to eight competitors who all want to move product,” said a distributor.

“Nothing has been done,” said a trader.

Downstream paraxylene (PX) production is limited, with plant closures, weak demand and limited export possibilities.

“It’s very difficult. There is so little activity. There are no [export arbitrage] windows given the situation,” said a second trader.

A number of market participants are surprised by the price increases. However, one producer explained the situation as being from limited offers in the market.

“Nobody is desperate to sell it. Whoever has got it, is happy to keep it,” said the producer.

Producers are said to be either reducing production, thanks to flexing their aromatics mix or are said to be introducing it into the gasoline pool.

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