2nd US Gulf reformer fire drives aromatics prices up

01 April 2004 21:27  [Source: ICIS news]

HOUSTON (CNI)--US mixed xylenes (MX) and toluene prices gained 13-15 cent/gal Thursday in brisk trading following a fire at Exxon Mobil’s Baytown, Texas naphtha processing unit earlier today.

Aromatics production at the Baytown site includes benzene and xylenes. The total benzene capacity at Baytown was reported to be 90 000 tonne/year, representing more than 30% of Exxon Mobil’s benzene output, according to industry sources.

MX values jumped from $1.67–1.71/gal on Wednesday to $1.81–1.84/gal FOB USG while nitration-grade spot toluene prices rose to $1.75–1.85/gal FOB USG in rapid succession Thursday morning. Market participants reported multiple deals concluded at the higher pricing levels for both products.

According to traders, US benzene prices were not easily assessed, with little availability in the prevailing tight US market. US traders were said to be attempting to buy European benzene, which helped drive prices in that region up to the $790-800/tonne range FOB Rotterdam early Thursday.

In an earlier incident Tuesday night, BP Chemicals’ ultraformer at Texas City, Texas was shut down by an explosion and fire. Market analysts said that naphtha units at both the Baytown and Texas City sites provide feedstock to aromatic production within the sites, so downtime could curtail availability of benzene and xylenes.

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