Asia IX, PX gain $25-35/tonne on firm demand, supply concerns

19 July 2011 11:48  [Source: ICIS news]

SINGAPORE (ICIS)--Asian prices of isomer-grade xylene (IX) and paraxylene (PX) jumped $25-35/tonne (€18-25/tonne) on Tuesday on brisk buying and continued concerns over supply disruptions from Fujia Dahua and CNOOC-Kings Group in China, market sources said.

IX prices were assessed at $1,265-1,280/tonne FOB (free on board) Korea and $1,275-1,290/tonne CFR (cost and freight) northeast Asia, up $25-30/tonne higher than Monday’s close, according to ICIS.

A cargo for second-half August/first-half September loading was heard sold at $1,275/tonne FOB Korea, with subsequent bids for August loadings heard at around $1,260-1,265/tonne FOB Korea.

Selling indications were at around $1,280/tonne FOB Korea.

A second 3,000-tonne IX cargo for second-half August delivery was heard sealed at $1,285/tonne CFR Taiwan. Subsequent bids for prompt shipments continued to be placed at $1,285/tonne CFR Taiwan, while buying notions for September material were hovering at around $1,270-1,275/tonne CFR Taiwan.

Meanwhile, PX prices increased $35/tonne at $1,535-1,545/tonne CFR Taiwan and/or China Main Port (CMP) on Tuesday.

A sole parcel for second-half August delivery was exchanged at $1,530/tonne CFR Taiwan and/or China Main Port (CMP), market sources said. Following the deal, bids for August deliveries jumped to $1,535/tonne CFR Taiwan and/or CMP, against selling indications for August and September molecules of as much as $1,550-1,580/tonne CFR Taiwan and/or CMP.

Uncertainties over when CNOOC-Kings Group can restart production at its 900,000 tonne/year PX facility in Huizhou, China, have been prompting some end-users to scramble for August shipments.

CNOOC-Kings Group shut its Huizhou PX facility on 11 July following a fire that broke out at its refinery complex. On 13 July, the company said that most refinery operations have resumed, but its 2m tonne/year reformer and aromatics facility would remain shut for “at least one week”.

Customers of the Chinese aromatics maker have yet to receive any notifications for a reduction in contracted volumes.

Meanwhile, Fujia Dahua has yet to restart its 700,000 tonne/year PX unit in Dalian, after missing an initial target to resume production on 11 July.

A company official earlier told ICIS that the plant will be restarted “over the next few days”.

($1 = €0.71)

By: Bohan Loh
+65 6780 4359

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