29 June 2006 02:55 [Source: ICIS news]
SINGAPORE (ICIS news)--Upstream factors such as crude, gas and gasoline are increasingly driving aromatics markets, an industry official said on Thursday.
High energy costs were being pushed through into high aromatics prices and retarding demand, said Phil Parker, deputy managing director of Petrochemical Corp of Singapore (PCS).
The world of feedstock supply was changing rapidly and major increases expected in the availability of gas in the coming years, he added.
LPG supply would grow at around 60% between 2005 and 2010, condensate in the
However, volatility had increased in oil and gas pricing and made aromatics prices more unpredictable, he said.
The reformulation of transport fuels and new legislation had reduced the demand for methyl tertiary butyl ether (MTBE) and boosted alternative gasoline components such as toluene and xylenes. Gasoline demand continued to grow in the
The consequent rise in toluene prices, with Asian numbers at the same level as benzene in the mid-$900s/tonne FOB
There were opportunities for profit differentiation in the aromatics sector by taking lower value feeds and using new process technology, said Parker.
Businesses that are active in the aromatics space could benefit from higher liquidity in trading markets, where volumes have increased due to the higher volatility, and paper swaps were gaining in popularity.
The past two years had more frequent arbitrage from Asia to the
There were also new growth opportunities in the gasoline markets for companies like PCS, which can leverage their blend know-how and benefit from the logistical advantage their
The growth of demand into
The conference, which is organised by ICIS and International E-Chem, started on Thursday and ends on Friday.
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