SINGAPORE (ICIS)--Asian paraxylene (PX) market players are facing a potential ⌠non-settlement for the benchmark October Asia Contract Price (ACP), market sources said on Friday.
⌠Continued negotiations during the EPCA failed to yield any possibilities for a settlement, said a source familiar with the negotiations.
A sole settlement between Japan's Idemitsu Kosan and China's Zhejiang Yisheng Petrochemicals was heard at $1,620/tonne (┬1,198/tonne) CFR (cost & freight) Asia.
Other key buyers said the settled price is too high as the margins for the downstream purified terephthalic acid (PTA) producers are thin.
ExxonMobil and South Korea's S-Oil are looking to settle their October PX ACP at $1,620/tonne CFR Asia and $1,630/tonne CFR Asia respectively, but continue to face resistance from key buyers, according to sources.
Japan's JX Nippon Oil & Energy and Idemitsu Kosan have ceased their ACP negotiations with their respective customers and are looking towards published spot prices for contract settlements.