The August US paraxylene contract price settled at 73.5 cents/lb ($1,620.38/mt), an increase of 2.5 cents from July's contract price, sources said Tuesday.
The settlement is in line with most market expectations for an increase, because of an upward trend in US PX spot pricing, which in turn is driven by higher Asian PX prices, sources said.
Although the US PX spot market has been quiet, the Asian PX market has gained momentum amid stronger downstream markets, causing their prices to move higher. The US market tends to track movement in the Asian market as the US is a net exporter to Asia, sources said.
Domestically, downstream purified terephthalic acid demand has strengthened amid increasing need for further downstream polyethylene terephthalate production.
The settlement for July was one cent lower from June's contract price at 71 cents/lb, sources said.
The PX contract price is typically settled retroactively.
The US spot PX was last assessed Monday at $1,455/mt FOB US Gulf Coast.
