Asia aromatics fall $10-30/tonne on crude

06 August 2008 05:31  [Source: ICIS news]

SINGAPORE (ICIS news)--Asia’s aromatics values remain on a downtrend with prices slipping $10-30/tonne as crude values dipped overnight to $118/bbl, said traders on Wednesday.

Benzene saw the sharpest fall of $25-30/tonne to $1,200-1,215/tonne FOB (free on board) Korea, hitting a 14-week low. Prices were last seen near this level on 6 May this year, according to global chemicals market intelligence service ICIS pricing.

Trading was sluggish with an offer heard at $1,215/tonne FOB Korea for any September loading, $25/tonne lower than a deal heard on Tuesday.

Lower crude values and softening downstream styrene monomer (SM) prices along with high supply in the region had been pushing benzene lower in the past few weeks, said traders.

"There is no bullish factor [now] in the market, as crude and naphtha were previously supporting benzene," said a South Korean trader.

Toluene prices in Asia were also assessed $15-20/tonne lower at $1,120-1,130/tonne FOB Korea, with an offer heard at $1,135/tonne FOB Korea for any September loading.

The downturn in crude and weak market fundamentals in Asia continued to exert a bearish influence, said traders. Demand from China, Asia’s largest market, had been weak in the past month, which had pushed inventory levels higher in northeast Asia.

In line with this trend, paraxylene (PX) prices were notionally assessed at $1,400-1,410 CFR (cost and freight) Taiwan, $5-10/tonne lower than Tuesday’s close. Buying indications were down today by $20/tonne.

On Tuesday, offers had slipped to $1,430/tonne CFR Taiwan and/or China as buyers were not enthusiastic with their bids.

Downstream purified terephthalic acid (PTA) remained at a tepid $1,110-1,115/tonne CFR China, weighing down sentiment among PX end-users. One Taiwanese end-user said he would not consider any purchases now, while a Chinese counterpart quoted a buying idea around $1,400/tonne CFR China for September PX cargoes.

"If this goes on, it’s likely that the deals can once again be done at $1,400/tonne," said a South Korean broker, referring to the PX fixtures at $1,400/tonne CFR Taiwan and/or China a week ago.

Asian styrene monomer (SM) prices were on the downtrend as well. Buying indications for September parcels were $10-30/tonne lower at $1,460-1,480/tonne FOB Korea against selling indications at $1,500-1,510/tonne FOB Korea.

Selling indications into the key Chinese market were similarly lower at $1,520/tonne CFR China, LC (letter of credit) 90 days, for September arrival. Buying indications were limited.

With contributions from Salmon Aidan Lee and Clive Ong
For more on aromatics visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Mahua Chakravarty
+65 6780 4359

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