Petrotahlil - US paraxylene contracts were heard settled lower this week as participants reported a two-month settlement for February and March.
The February US paraxylene was heard settled down 2.25 cents from January at 41 cents/lb ($904/mt), while the March contract was heard settled 6 cents lower from February at 35 cents/lb ($771.50/mt).
The lower paraxylene contract subsequently pulled US PTA contracts lower as well, with sources pointing to February and March PTA contract settlements at 45.31 cents/lb ($998.90/mt) and at 41.29 cents/lb ($910.28/mt), respectively.
The lower paraxylene contract settlements come at a time when spot paraxylene prices have fallen sharply, shedding $160/mt since the beginning of March to finish Wednesday at $575/mt FOB USG. Sources continued to talk spot paraxylene pricing on a CFR Asia plus basis with the adder heard at $33/mt and lower.
Activity has been quiet over the past two weeks amid a sell-off in the energy and financial markets. Economics have improved on a theoretical level as upstream mixed xylene price have plummeted in line with lower RBOB and closed Wednesday at 127 cents/gal. The declines have widened the prompt spot PX-MX spread on paper and the spread was last estimated at near $187/mt, Platts data showed.
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