Asia PX 2020 proposed term contract formula changes; more weightage on ICIS

Nurluqman Suratman

08-Nov-2019

SINGAPORE (ICIS)–Several major paraxylene (PX) producers in northeast Asia including Japan’s JXTG Nippon Oil & Energy have recently made offers indicating a change in their pricing formulas for 2020 term contracts to include a higher weightage of ICIS spot assessments in negotiations.

JXTG Nippon Oil & Energy offered its term supplies for next year on a 50% ICIS, 50% Argus CFR (cost & freight) CMP (China Main Ports) basis.

It previously based 50% of its pricing on Platts, 25% on ICIS and 25% on Argus weighting.

In South Korea, both SK Global Chemical (SKGC) and S-Oil have offered term supplies for next year on a 50% ICIS and 50% Argus price formula. In 2018, majority of their contracts were based on Platts.

Term negotiations have recently begun in October at a time when market dynamics are likely to change, especially with the startup of new mega PX capacities in China.

Hengli Petrochemical started its new 4.5m tonne/year PX facility at the start of the year, while Zhejiang Petrochemical is targeting to start up its new 4m tonne/year PX facility at the end of 2019.

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?