HOUSTON (ICIS)--The mixed xylenes (MX) contract between BP and Citgo has been dissolved, US aromatics market sources said on Friday.
One MX market participant said that the contract had been dissolved on the first day of the new year, as negotiations between one buyer and one seller were not representative of the entire market.
BP and Citgo were not available for comment on the MX contract agreement at the time of publication .It was not known if BP or Citgo would establish a new MX contract with other parties. Another trade source said that contract arrangements were also annulled because the amount of negotiated volume was too small.
Trade participants added that the lack of an MX contract price has little or no impact on downstream paraxylene (PX) prices.
MX prices are presumed to be on a spot basis going forward. However, a full market consensus has not yet been reached.
($1 = €0.77)
Additional reporting by Brian Balboa
For more on MX and PX visit ICIS chemical intelligence