Date: 16 December 2019 , 19:27
News ID: 7982

S-Oil settles 2020 term PX contract

South Korea's S-Oil has settled its first term 2020 paraxylene (PX) contract, which includes an Argus cfr Taiwan/China component, with China's Shenghong Petrochemical.
S-Oil settles 2020 term PX contract

The pair have agreed on a discount of $2/t against a 50pc Asia Contract Price (ACP), 50pc spot cfr Taiwan/China assessments formula for an undisclosed volume termed as an "ACP portion". The 50pc spot calculation will be on a 35pc Argus, 35pc Icis and 30pc Platts pricing basis.

The two companies also concluded an undisclosed volume of PX at a 50¢/t discount to the same formula termed as a "non-ACP portion".

This marks a switch from previous contracts that were almost exclusively priced against Platts cfr Taiwan/China spot assessments.

Term 2019 ACP portion contracts were mostly settled at a $2/t discount to the 50pc ACP, 50pc Platts cfr Taiwan/China assessments formula, while the non-ACP portion was settled at a 50¢/t discount to the same formula.

By Suzi Shin

source: Argus Media