Europe OX spot prices move up with some buying interest

22 April 2014 16:26 Source:ICIS News

LONDON (ICIS)--European orthoxylene players on Tuesday saw an increase in demand and some upward movement in spot pricing.

The extra volumes are said to be linked to demand in the phthalic anhydride (PA) sector, with some PA makers looking to boost production.

“Some people are asking for OX. [They want] extra tonnes to boost PA production,” said one xylenes producer.

OX buyers also talk with trepidation of limited availability on the back of pricing developments in mixed xylenes (MX) and paraxylenes (PX).

This last week has seen an increase in MX prices, linked to higher gasoline prices. However PX buyers have been strongly resisting price increases. As a result production of PX is said to be down, limiting supply of co-product OX.

“If they reduce PX production, [there will be a] shortage of OX. It will have an effect,” said one OX buyer.

The net result is an increase in spot prices, and expectations of at least a rollover with respect to the May contract price.

By Rhian O'Connor