US June OX contract rolls over amid higher MX prices

06 June 2014 23:08 Source:ICIS News

NEW YORK (ICIS)--The US orthoxylene (OX) contract for June was fully settled at a rollover of 55.75 cents/lb ($1,229/tonne) from May amid higher US mixed xylenes (MX) prices, sources confirmed on Friday.

OX comes out of the refining process with MX and is typically affected by its price movement, as well as the movement of toluene and benzene that also come out of the gasoline stream.

MX spot prices were firmer in the week and the June contract price for the material rose by 2 cents/lb from May.

The uptrend in MX has kept OX from falling lower. OX contracts prices fell 7.1% from January to May.

Demand for OX in the downstream phthalic anhydride (PA) market is steady, as there are no fundamental changes in the PA market in the second quarter from the first quarter, market sources said.

OX is primarily used to make PA, a key intermediate in the production of plasticizers, which are used to make products such as flexible polyvinyl chloride (PVC).

Major US OX producers include ExxonMobil Chemical and Flint Hills Resources.

By Feliza Mirasol