Europe OX April contract settlement expected by 31 March

LONDON (ICIS)–European orthoxylene (OX) buyers and sellers on Monday confirmed that they have already started discussions for the April contract level, with a quick resolution expected by 31 March.

The negotiations for the European OX contract are usually orderly with resolution usually early in the month. However, this month it looks like settlement could be complete before the start of April.

“I even expect it today [Monday] or at the latest tomorrow,” said one producer.

“I hope today [Monday] afternoon. We will fix it today if possible,” said a consumer.

Buyers and sellers also seemed in agreement on the probable settlement direction.

“It will be a small increase for sure,” said the buyer.

“A small increase is what we are heading for,” said the producer.

The March Europe OX contract was fully settled at €700/tonne, up €30/tonne from February.

Interestingly, increases were more moderate than those seen in Asia, and the European contract remains at a discount to current Asian spot prices. One producer chose not to follow the settlement, stating that the price did not justify the cost of production.

The contract is settled free delivered (FD), northwest Europe (NWE).