23 March 2009 07:11 [Source: ICIS news]
SINGAPORE (ICIS news)--An uptrend in the price of Asia’s solvent grade xylene was likely to continue on the back of improving demand from the key Chinese market and a hike in crude values, producers and traders said on Monday.
The approach of the summer season is known to boost demand for solvents like paints, thinners and coatings, and this was expected to support consumption of solvent grade xylene in northeast Asia in the coming weeks, traders said.
Prices rose by $35/tonne (€26/tonne) in two weeks to $600-615/tonne FOB (free on board) Korea last Friday, according to global chemical market intelligence service ICIS pricing.
One of the key reasons behind the uptrend was that trading of China-bound cargoes had picked up in the past two weeks, traders and producers said.
The inventory level in the Chinese domestic market had dipped in recent weeks on declining supply from local producers who were running their aromatics units at reduced rates or were channeling aromatics towards gasoline production, traders said.
The hike in crude values to above $50/bbl since late last week had also boosted sentiment and aromatics prices in the region, traders and producers said.
(1$ = € 0.74)
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