The US orthoxylene and phthalic anhydride markets are showing signs of having hit bottom on firm upstream mixed xylene price, sources said Thursday.
MX spot prices were assessed at $3.65/gal FOB USG, Thursday, up 15 cents/gal from a week ago.
"We'll see how it goes, but if MX can hold then OX should be stable to higher," a PA maker said.
US OX contracts have shed 12 cents/lb from its 2012 peak of 71 cents/lb in April. Because OX prices tend to follow MX, the recent upturn in MX gave confidence to several participants that August's OX CP could go up.
US PA contract prices are based at a one-month lag to moves in the OX contract. August's molten PA price, for example, will decrease 5 cents/lb ($110/mt) to 76 cents/lb ($1,676/mt) delivered due to July's OX contract settling down 5 cents/lb at 59 cents/lb.
A rebound in OX then by definition means PA will also rebound in September.
