Asia petchems continue to rise on high crude

12 February 2008 04:12  [Source: ICIS news]

By Florence Tan

SINGAPORE (ICIS news)--Petrochemical prices in Asia continued to rise on Tuesday, with benzene posting the largest gain of $30/tonne (€21/tonne), as crude values soared.

Crude gained over $6/bbl since Friday to rise above $93/bbl, sparked by Venezuela’s threat to cut oil exports to the US in a dispute with ExxonMobil.

Prices also soared on various refinery glitches and a colder weather forecast for the US northeast.

Benzene values jumped $30/tonne in Asia, after rising $25/tonne on Monday, on the back of higher energy values seen overnight along with price hikes in European and US benzene markets, traders and a producer said.

The increase in crude values supported traders’ efforts to boost prices, they said.

March cargoes were notionally assessed at $1,060-1,070/tonne FOB (free on board) Korea, $30/tonne higher than Monday’s close.

Naphtha prices opened $12/tonne higher on Tuesday on the back of crude spikes amid a quiet morning session. Second half March price indications were pegged at $852.50-855.50/tonne CFR (cost and freight) Japan.

Toluene prices were notionally assessed at $930-940/tonne FOB Korea, up around $5/tonne on the low-end from Monday. A bid for March loading was heard at $925/tonne, $14/tonne higher than Monday, and this met an offer at $950/tonne.

Offers for styrene monomer (SM) March parcels were posted around $1,360-1,370/tonne FOB Korea, up around $15-20/tonne from Monday. Buying indications, which were limited on Monday, emerged at around $1,350/tonne.

Two SM deals were heard concluded for any March shipment at $1,361/tonne and $1,370/tonne.

Markets for other petrochemicals such as olefins and polymers remained muted as participants await the return of the Chinese buyers on Wednesday after a week-long holiday.

Clive Ong, Mahua Chakravarty and Desmond Chia contributed to this article.

($1 = €0.69)

By: Florence Tan
+65 6780 4359

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