Asian aroms, naphtha prices spike on record crude

06 May 2008 05:48  [Source: ICIS news]

By Serene Cheong

SINGAPORE (ICIS news)--Asian aromatics and naphtha prices rose on Tuesday in response to sharp overnight gains in NYMEX crude oil values.

Crude surged to a fresh record of $120.36/bbl (€78.20) in intra-day trade on geopolitical concerns in the Middle East and speculations on higher energy demands stemming from a rosier US economic outlook.

A weak US dollar and supply disruptions in Nigeria from a militant attack that forced Shell to temporarily shut its 164,000 bbl/day unit were also cited as factors behind the spike.

Asia’s benzene prices rose above $1,200/tonne FOB (free on board) - the highest seen in 45 months – on skyrocketing crude values and stronger overseas markets, traders and a producer said early on Tuesday.

Market sources said the firm trend could last through May due to the tight supply within Asia on the back of numerous outages. The record high since 1996 was $1,230-1,250/tonne in August 2004.

Toluene prices also scaled new heights of $1,100-1,110/tonne FOB Korea with a bid heard at $1,100/tonne for June loading. Selling indications were heard at around $1,125-1,130/tonne.

Regional styrene monomer (SM) prices gained further ground on buoyant feedstock benzene values with prices indications up some $15-20/tonne.

Buy-sell numbers were cited at $1,435-1,470/tonne FOB Korea for second half May cargoes and $1,455-1,480/tonne for any June parcels. Domestic offers in eastern China rose to yuan (CNY) 11,700-11,750/tonne ex-tank from CNY11,650/tonne on Monday.

In the Asian naphtha market, prices opened $17.00/tonne higher early Tuesday with second half June nominations at $994.00-997.00/tonne CFR (cost and freight) Japan and first half July contract notionally pegged at $992.50-995.50/tonne.

Overall, increases in naphtha prices lagged behind that of crude, with the former rising some 5.87% since mid-April as compared to the 6.12% climb in cost of Brent crude.

On Bursa Malaysia, crude palm oil (CPO) futures moved up in tandem on boosted biodiesel demand prospects from the higher crude oil prices. Benchmark July delivery contract traded at Malaysian ringgit (M$) 3,428/tonne early Tuesday, up M$38/tonne from the morning’s opening.

In the purified terephthalic acid (PTA) and monoethylene glycol (MEG) markets, however, no significant impact was reported as PTA markets remained stale due to a lack of buying and selling ideas on a stable feedstock paraxylene (PX) market.

Firmer offers and bids for MEG imports into China were heard on the back of bullish sentiment as demand from downstream end-users was expected to pick up after the spate of holidays across Asia, said a southeast Asian industry source.

($1 = €0.65)

Desmond Chia, Clive Ong, Hong Chou Hui, Mahua Chakravarty and Jeremiah Chan contributed to this article
For more pricing intelligence please visit ICIS pricing

By: Serene Cheong
+65 6780 4359

< previous article(VIDEO - ICIS news Europe Lunchtime Bulletin 30 October 2009)

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