Xylenes dip

24 August 1998 00:00 [Source: ACN]

Benzene imports to Japan compete with lower domestic prices as the yen depreciates

Benzene: A Japanese trader sold three cargoes of less than 1000 tonne each to Japan for prompt delivery in August. The highest price paid was US$205-206/tonne fob Korea.

A 3000-tonne deal was rumoured at US$207-210/tonne fob SEA for mid-September shipment to Korea. A supplier expects August and September spot prices to remain at this level but hopes to see price reductions in October.

The Japanese trader believes there will be no spot requirement for September cargoes from Japan. Domestic prices have been competitive with import prices because of the yen depreciation and importers will be unable to charge above US$180/tonne fob Korea, he said.

Taiyo's 300 000 tonne/year benzene unit reportedly came back onstream on 18 August after a turnaround of more than one month.

Ssangyong Oil restarted its reformer unit on 16 August.

Toluene: Chinese Petroleum Corp (CPC) awarded a tender for 3000 tonne at US$192/ tonne cfr Taiwan for delivery in October. Its September purchase was at US$193/tonne cfr.

Mixed xylenes: Prices slipped. CPC awarded a tender for 3000 tonne at US$214/tonne cfr Taiwan for delivery in October, US$6/tonne lower than its September purchase.

A South Korean paraxylene (PX) producer may buy mixed xylenes from the US Gulf Coast (USGC) if the spot price drops below 60 cent/gal (US$182/tonne) fob. The USGC spot price was 62 cent/gal. It may also buy from Thailand or the Philippines.

Sellers are reportedly offering material at US$210-220/tonne fob Korea, said a South Korean source. However, South Korean and Japanese buyers were enquiring at US$200- 205/tonne fob Korea.

Styrene: A Taiwanese buyer concluded two 3000-tonne lots at US$370/tonne cfr Taiwan with 30 days' credit for September delivery. Its August arrival purchase was agreed at the same price.

South Korean producers last week were reportedly offering material at US$370/tonne cfr Taiwan with 30-60 days' credit for September cargoes, said the Taiwanese buyer.

Notional offers from South Korean producers were reportedly US$360/tonne fob Korea, meaning they may be willing to sell at US$355/tonne fob Korea, said a South Korean source. Western traders were reportedly bidding at a low of US$350/tonne fob Korea, said the same source.

Paraxylene: A South Korean PX producer has purchased 30 000 tonne for delivery in August and September at US$275-280/tonne cfr Korea from SEA, Korea, and the US. The same producer plans to bid at US$270/tonne cfr Korea for additional cargoes for August and September deliveries. It has been purchasing PX because it is more expensive to buy mixed xylenes.

A Japanese trader was rumoured to have sold 20 000 tonne to Indonesia at US$280/ tonne cfr Indonesia for August delivery, said a South Korean source.

Ssangyong Oil was expecting to restart its PX unit in Onsan, South Korea, at the end of last week or early this week.

Orthoxylene: A South Korean producer rejected enquiries at US$270/tonne cfr Taiwan and China. It was looking to sell at above US$300/tonne fob Korea.

Phenol: A South Korean producer sold 1000 tonne at US$530/tonne cfr China for August delivery.

Producers expect prices to pick up by end-August because of the startup of Taiwan Prosperity's cyclohexanone plant in Taiwan and the phenol plant turnaround of Kumho P&B Chemicals in South Korea.

Bulk chemical spot prices - US$/tonne

Asia/Pacific spot

US/Euro contracts

NE Asia¹

SE Asia²

US³

NWE⁴

Benzene

205-206

207-210 fob Thailand

0.75/gal

385

Toluene

192 cfr Taiwan

195 fob SEA Thailand⁵

395 fob

Xylenes

214 cfr Taiwan

216 fob Thailand⁵

0.66/gal

Styrene

370 cfr Taiwan

400 cfr Philippines⁵

0.245-0.265/lb Apr

840-885

Paraxylene

275-280 cfr Korea

305 cfr India⁵

0.1575/lb FD Q2

624

Orthoxylene

275 cfr Korea⁵

280 cfr India⁵

0.145 May

443

Phenol

530 cfr China

0.41/lb Q2

1600-1650 Q2

¹ prices are fob Korea unless otherwise indicated

² prices are cfr SEA unless otherwiseindicated

³ US prices are June contract levels on an fob basis unless otherwise indicated

⁴ European FD Q3 contract price in DM/tonne, courtesy of ECN, except for phenol

⁵ no known recent business

na = not available

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.

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 18 January 2010)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly