The US July paraxylene contract price settled at 69.75 cents/lb ($1,537.71/mt), sources said Friday, an increase of 3.75 cents/lb compared with June's settlement.
This settlement is the highest since the January contract settlement at 69.75 cents/lb.
Market expectations for the July settlement were heard as high as 70 cents/lb. The reason the settlement was so late this month was because one producer declined to agree to a settlement at this level, however, three other producers and two consumers agreed on this price, sources said.
Spot pricing in the US Gulf Coast paraxylene market averaged $1,325/mt for July, which was $88/mt higher than June's average. Increases in spot pricing during July were attributed by industry sources to tight feedstock supply and a stronger Asian paraxylene market. However, US Gulf Coast paraxylene market activity has been minimal because of slower domestic and Asian demand for material, sources said.
US spot paraxylene was pegged Friday at $1,310/mt FOB US Gulf Coast after spot pricing was heard in a range of $1,310-$1,330/mt FOB USG.
