Market and product
Europe June PX settlement confirmed at €930/tonne
The settlement was originally viewed by some buyers as too high
“It's justified to be a bit higher in all fairness because in Asia it picked up quite a lot and we have a different exchange rate,” said one buyer earlier in the month.
"So maybe 30 [€/tonne] is too much but 20 [€/tonne] would be reasonable,” it added.
However, as Asia prices have continued to rise through the month, the European settlement has looked more reasonable.
“PX is $1,300 [/tonne] in Asia, so €930 [/tonne in Europe] is not bad. We have had worse,” said one buyer last week.
The timing of the initial settlement was also seen as positive after several months of non-settlement in Asia, causing late settlements in Europe.
"Its good to have had any early settlement, it keeps the process alive in Europe," said a producer.
PX continues to be tight globally, with low operating rates in Asia drawing product in the region.
In addition, a force majeure in Italy has put specific pressure on southern European supply. As a result, Europe has seen rising spot prices despite low end-market demand.
The contract was agreed on a free delivered (FD) northwest Europe (NWE) basis.
