While bids for European paraxylene remain in the low-$1,400/mt FOB R'dam level, two traders said Thursday that even producers with PX for the spot market were not offering on bullish expectations for Autumn.
One trader said he got a bid this week at $1,400/mt FOB R'dam, while a producer said he received a bid at $1,420/mt CIF ARA this week. However, sources said there were no PX offers to be found.
"The producers who have a little bit extra, they don't want to sell at any price," one trader said. "They know in one month things will be completely different."
He cited that August and September are very strong months for the polyester industry in Asia as it prepares for the winter clothing season and ramp up packaging production in preparation for Christmas.
He went on to say that new downstream purified terephthalic acid plants are expected to come online this fall in Europe and Asia, which will increase demand for PX.
A second trader agreed with that assessment an said he could not find any PX offers. A producer said he also thought that was the case and that European prices would catch up on PX after the summer holidays.
However, last week a PX consumer said he was not concerned about PX supplies this fall, when the 700,000 mt/year PTA plant in Sines, Portugal is expected to come online.
"My supplies are secured for the rest of the year," he said.
