The April European contract price for paraxylene has been fully settled at Eur1,120/mt ($1,467/mt) FD NWE, Eur130/mt lower than March's ECP, sources confirmed Thursday.
The ECP was initially settled on Wednesday by seller Shell and buyer Oxxynova, sources said. Shell did not confirm, and Oxxynova could not be contacted.
Subsequently, other sources confirmed following the settlement.
The decline was precipitated by a drop in the March Asian CP, which settled at $1,400/mt CFR on March 29.
There was only an initial settlement for the ACP for March, at $1,670/mt, as further buyers were reluctant to follow, while the February ACP was settled at $1,685/mt.
March's ECP settlement was Eur10/mt down from February, while Asian buyers and sellers traded at the monthly average of the Asian spot prices in lieu of a full settlement.
This arrangement would have benefited Asian buyers, as Asian spot prices underwent large falls over the course of March, although they have begun increasing since the April ACP settled.
The April ECP settlement is roughly in line with market expectations.
Sources had suggested prices ranging from Eur1,080/mt to Eur1,160/mt, although most were in the Eur1,100-1,140/mt range.
One buyer initially said the price was too high and it would not follow.
"It's based on over $1,400/mt. In March, Europeans had a price based on $1,600/mt, but the Asians paid less by getting the spot average. It's not as if Europe is in such good shape that we should pay a premium to Asia," the buyer said.
But others said the level was an appropriate compromise.
"Producers and buyers are quite far apart this month, so there will be a few unhappy people," said a producer.
