Xylenes firm

18 November 1996 00:00  [Source: ACN]

Supply of spot PX is tight as producers report rising bids

Benzene: South Korean producer offers were US$310/tonne fob for November delivery. Chinese material was still available with offer prices at US$300/tonne fob Nanjing. However, this was too high for most buyers. Buyer ideas in NEA were less than US$300/tonne fob Korea.

There was still buying interest from India, but market players expect India to be covered by Iran. One 3500-tonne lot was sold to India at US$325/tonne cfr. The sale by a western trader was believed to be an Iranian cargo.

Toluene: Inventories were under control because of gasoline blending and TDP operation, producers said. Hanwha Energy and LG Caltex Oil were running their TDP units at 100% because of demand for mixed xylenes.

However, demand for toluene remains weak and chemical use prices are still below blending values. Producers offered US$280/tonne fob Korea, just under blending values. Buyer ideas were US$270/tonne fob Korea.

Mixed xylenes: The restart of Yangzi Petrochemical's aromatics complex in Nanjing has brought China back to the xylenes market. Chinese buyers purchased 3000 tonne from South Korea at US$290-295/tonne fob Korea. A South Korean producer sold another 2000 tonne to Japan at the same price.

High operating rates for PX producers in South Korea and Japan were keeping mixed xylenes tight and prices firm. Japanese buyers had been resisting importing spot material because of high prices, but further imports are likely as Japanese PX producers attempt to lift operating rates. Availability of domestic supply has limited Japanese PX production.

Styrene: Markets were quiet. There was little buyer interest and producers did not give firm offers. Seller ideas were US$480/tonne fob Korea. Buyer ideas remained near US$470/tonne cfr Taiwan.

Turnarounds in Japan were over and producers were considering further cuts on operating rates. Most plants were only operating at 80-85%.

Yukong restarted its plant after maintenance this month. However, South Korean producers said their inventories were manageable because of contract sales and reduced operating rates. South Korean operating rates were at about 80-85%.

Paraxylene: Supply of spot material was tight. Most producers said they had no material available for November. Producers reported trader bids as high as US$450/tonne fob Korea. However, most buyer ideas were no higher than US$430/tonne fob Korea.

It was unclear how many traders were short for the month. Traders were looking for parcels of about 4000-5000 tonne for Taiwan and SEA. However, many traders were believed to have already covered their sales.

One 3000-tonne sale was reported at US$435/tonne fob Shanghai for November lifting. Market players believe prices have peaked and further hikes will be difficult.

Orthoxylene: South Korean producers hiked offers to US$385/tonne fob Korea. Markets tightened as cold weather limited supplies from Russia. The two South Korean producers reported increased buying interest from India. Japanese production was reportedly down because of a shortage of mixed xylenes. However, buying interest remains weak.

One South Korean producer had no spot material available for November or December. Its usual 4000-5000 tonne of exports have been allocated to domestic buyers.

Phenol: Fixtures of 1000 tonne to China were concluded at US$700/tonne cfr Shanghai for November delivery. Shipments to SEA were settled at US$700-720/tonne cfr Singapore for November delivery.

Bulk chemical spot prices - US$/tonne
	Asia/Pacific spot		US/Euro contracts
	NE Asia1	SE Asia2	US3	NWE4
Benzene	310 cfr Ulsan5	325	1.00/gal	467.5
Toluene	275	-	0.78/gal	385
Xylenes	295	2905	0.77/gal	na
Styrene	470	500	0.28/lb Sept	865-910
Paraxylene	435	450 cfr India	0.19/lb FD Q4	635
Orthoxylene	3655	410 cfr India	0.165/lb Sept	530
Phenol	700 cfr China	700-720	0.40-0.42/lb Q4	1200-1250
1Prices are fob Korea unless otherwise indicated 2Prices are cfr SEA unless otherwise indicated 3US prices are October contract levels on an fob basis unless otherwise indicated 4European FD Q4 contract price in DM/tonne, courtesy of ECN, except for phenol 5No known recent business   Prices contained in this report are obtained by the ACN team through consultation with producers, consumers and merchants in the regions indicated. They are a guide to price levels of recent business and reflect medium to large tonnage sales. Spot prices are quoted as indicated: cfr - cost and freight; fob - free on board; cif - cost, insurance and freight; FD - free delivered. Spot prices are based on information available mid-week prior to the date of issue. Dollar prices are based on prevailing rates of exchange.

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