London (Platts)--11Mar2011/257 pm EST/1957 GMT
European paraxylene traders said Friday it was still unclear what impact the 8.9 magnitude earthquake that struck Japan earlier in the day would have on the Northwest European paraxylene market. In Asia, market reaction was swift. Asian PX prices surged $51.50 Friday, ending the week at $1,651.50/mt FOB South Korea and $1,671.50/mt CFR Taiwan/China after the earthquake was reported. South Korean bids also flooded the market after news of Japan's aromatics complexes in Chiba, Kawasaki and Kashima being affected. Japan is South Korea's top PX source, accounting for more than 50% of its total import volume in January. Three traders all said there was no immediate impact on the Northwest European spot market Friday, but that it could have an impact going forward. "I don't know yet, we are trying to have an idea on what impact it will have on Asia," one trader said. Another source said even if the impact in Asia were severe, it shouldn't affect the European market right away. "In the short term we have more offers than bids," the source said. But he added: "It's one world so it will have an impact eventually." A third trader said at the moment there had been no trades and therefore there was not much difference. He said he wasn't so concerned with the Japanese PX production because plants there are built to withstand very strong earthquakes. But he said it could have a serious impact on shipping rates if vessels had been swept away. --Kimberly Peterson, kimberly_peterson@platts.comSimilar stories appear in Polymerscan. See more information at http://bit.ly/Polymerscan