Update Kuwait Aromatics FM on January PX lifts prices – buyers

07 December 2010 01:59  [Source: ICIS news]

SINGAPORE (ICIS)--Kuwait Aromatics (KARO) has declared force majeure (FM) on paraxylene (PX) supplies from its 820,000 tonne/year Shuaiba unit due to a “sudden glitch”, which has lifted the materials’ price, customers of the Middle Eastern producer said on Tuesday.

“They have already completed December deliveries. The FM is for January supplies,” said one northeast Asian end-user.

KARO officials could not be immediately reached for comment on the FM and the estimated production loss, but traders told ICIS the company's plant had been shut since 3 December after experiencing some utility issue.

This is the second FM the company had to declare within 2010.

The company declared its first FM on 14 January after it experienced a sudden outage at the time.

News of the FM had already lifted prices of spot PX in Asia on Tuesday morning with bids for January delivery molecules jumping at least $10-15/tonne (€7.50-11.25/tonne) from Monday to $1,290/tonne CFR (cost and freight) Taiwan and/or China Main Port (CMP).

Offers were meanwhile scant as traders were said to be waiting out for prices to rise further as the supply-balance for the January delivery month looked set to tighten.

Selling notions were last heard around $1,300/tonne CFR Taiwan and/or CMP as at the close of business on Monday.

KARO is a joint venture (JV) between Kuwait’s Petrochemical Industries Company (PIC), Kuwait National Petroleum Company (KNPC) and Qurain Petrochemical Industries Company (QPIC).

PIC and KNPC each has a 40% stake in the JV, while QPIC owns the remaining 20%.

($1 = €0.75)

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By: Bohan Loh
+65 6780 4359

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