EU-Asia PX price spread narrows but arb remains technically open

10 January 2012 02:26  [Source: ICIS news]

SINGAPORE (ICIS)--The price spread between paraxylene (PX) prices in Europe and Asia narrowed late on Monday but the arbitrage window between the two regions remained technically open on paper.

The difference in spot PX prices between the two regions stood at $176/tonne (€137/tonne) on 9 January down from $199/tonne on 6 January.

PX prices in Europe were assessed at $1,400-1,410/tonne FOB (free on board) Rotterdam (Rdam) while Asian prices stood at $1,577-1,585/tonne CFR (cost and freight) Taiwan and/or China Main Port (CMP).

Freight costs for a 10,000 tonnes shipment was last heard hovering in the high-$80s/tonne.

Meanwhile, prices of isomer-grade xylene (IX) in the US firmed on Monday on the back of tight supply.

The US-Asia IX arbitrage remained closed with US prices standing at $1,186-1,216/tonne FOB US Gulf, up $15/tonne from 6 January.

Asian IX values were assessed at $1,255-1,265/tonne FOB Korea and $1,255-1,270/tonne CFR NE (northeast) Asia with cross-Pacific freight costs for a 10,000-tonne shipment hovering around $100/tonne.

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By: Bohan Loh
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