US orthoxylene contracts settled at 48.5 cents/lb ($1,069/mt) for July, up 2.5 cents from June, multiple market sources said Thursday.
The increase was within market expectations, as feedstock mixed xylene prices have trended higher over the past month due to tighter supply and greater demand from gasoline blenders, sources said.
Upstream MX prices averaged 297 cents/gal ($900/mt) FOB USG in June, up from May’s average price of 267.65 cents/gal ($811/mt) FOB USG. July MX was assessed Thursday at 303 cents/gal ($918/mt) FOB USG. OX production costs are estimated at about $150/mt above the MX price, based on market feedback.
US OX contracts are settled between buyers and major producers Flint Hills and ExxonMobil Chemical.
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With the 48.5-cent/lb settlement, US phthalic anhydride prices are likely to rise by at least 2.5 cents/lb in August. PA prices typically change on a monthly basis, tracking movement in the preceding month’s OX contract price, per market feedback.
US PA producer Stepan plans to increase its August prices by an additional 3 cents/lb on top of any changes linked to the July orthoxylene contract movement, a company source said late last month. The margin expansion would be used to fund equipment upgrades and capacity expansions in a North American market that has become tighter, sources said.
July phthalic anhydride prices were assessed at 63.5 cents/lb ($1,400/mt) FOB USG delivered for flake and 66 cents/lb ($1,455/mt) FOB USG delivered for molten.
