An initial orthoxylene contract price for August was settled at Eur1,090/mt ($1,337/mt) FD NWE late last week between Total Petrochemicals and four consumers, a Total source confirmed Monday.
The June CP represents an increase of Eur40/mt compared with the July CP of Eur1,045/mt FD NWE.
The settlement took place on Friday evening, the source said Monday.
A consumer source also confirmed the settlement at Eur1,090/mt FD NWE.
"Demand does not justify higher settlement, as the increase is driven mainly by higher feedstock costs," the consumer source said.
"Spot prices are recovering for the same reason, while there is also some restocking in Asia following the emptying of the pipeline, but demand is definitely not prosperous."
Feedstock mixed xylenes prices were assessed as stable, with solvent-grade SM assessed unchanged at $1,160/mt while virgin-grade was at $1,165/mt FOB ARA as energy markets turned volatile.
Buyers and sellers were stubbornly far apart in their estimates of the market due to the volatile energy price swings of the past two weeks.
Market participants said that while summer is seasonally slower, orthoxylene demand from phthalic anhydride for use in electric cable manufacturing is particularly low as cables were produced earlier in the year.
Meanwhile demand from the automotive industry was also said to be sluggish.
"In Germany there were incentives in 2009 that encouraged people to change cars, which effectively took demand out of the future, which is now," an OX consumer said.
"Macroeconomic concerns also mean people are more hesitant about spending on new cars."
