China’s solvent xylene margin shrinks on weak demand

20 December 2011 09:39  [Source: ICIS news]

SINGAPORE (ICIS)--Solvent xylene margins in the China’s spot market shrank this week on poor demand for the material in November and December, industry sources said on Tuesday.

“Market trading activity has turned sluggish due to the off season poor demand,” a trader said.

Solvent xylene spot prices in east China dropped by CNY 350/tonne from yuan (CNY) 9,400-9,500/tonne ($1480-1496/tonne) to CNY9,100-9,150/tonne during the past one and a half months, according to Chemease, an ICIS service in China.

But the imported cargoes cost $1,200-1,220/tonne (€924-939/tonne) (CFR CMP) during November to early December, equivalent to CNY9,250-9,400/tonne on an import parity basis, according to Chemease.

That means the cargo-holders lost CNY150-250/tonne on each sale.

“We have suffered losses because of the contrast between high cost of imported cargoes and decline in the spot market prices,” another trader said.

The domestic market will continue to remain weak due to the Lunar New Year, which is falling on 23-24 January, traders said.

($1 = €0.77 / $1 = CNY6.35)

Please visit the complete ICIS plants and projects database
For more information on xylenes, visit
ICIS chemical intelligence

Author: Vivian Liu

AddThis Social Bookmark Button

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