In spite of narrow purchase interest in the region, Paraxylene (PX) sellers last week in Asia increased their offers, as most buyers looked for news of December contract price settlements.
A trader said that dynamic sellers have come forward with January PX offers at the USD 880/mt CFR Asia mark, well above bids at below the USD 850/mt CFR mark.
This has created a kind of an impasse in the Asian region with players depending on the contract price settlements for a fresh cue.
Though increases in isomer grade MX values have helped in improving the market undercurrent slightly, this cannot justify seller efforts to achieve such high offer price targets, thus leaving players finding for optional signals for fresh market direction.
Trader also informed that this week is expected to be critical to decide if the slumping trend in Asian PX has ended or not. The traders deny settling a transaction at the high price levels being pointed out by sellers.
According to traders, the correct prices for PX is no higher than the USD 840/mt CFR levels, a price which sellers deny to accept, claiming that the market rates have already touched bottom and that offers at this stage will only soar.
In plant news, poor economics forced three of PTA of Taiwan's CAPCO to cease.
Slumping market fundamentals have ceased CAPCO's No 2 (250 kt/annum), No 3 (250 kt/annum) and No 6 (700 kt/annum) units since October.
marketing@alchempro.com
