Asia isomer xylene hits 9-mth high, rises by $45/t

17 March 2008 06:52  [Source: ICIS news]

SINGAPORE (ICIS news)--Asia’s isomer-grade xylene values have hit a nine-month high with prices on Friday assessed $40-45/tonne higher than the week before on heightened energy values and an uptrend in downstream paraxylene (PX), one producer and traders said on Monday.  

Prices were pegged at $1,015-1,030/tonne FOB (free on board) Korea, notching up a total gain of $95/tonne since the week ended 22 February.  

Prices soared past the $1,000/tonne mark last week with deals reported at $1,000-1,030/tonne FOB Korea.

The last time prices were above the $1,000/tonne mark was in June 2007, according to global chemical market intelligence service ICIS pricing.

High crude and naphtha values have exerted pressure on producers to hike prices and widen the spread with naphtha, traders and producers said.

The naphtha to isomer xylene spread was at $115-129/tonne based on naphtha prices at about $900-901/tonne CFR (cost and freight) Japan on Friday. The estimated spread between naphtha and BTX was about $140-150/tonne.

 In the past few months, this spread had narrowed due to the persisting rally in crude and naphtha values, forcing some Korean and Japanese aromatics plants to reduce operating levels.

"Some companies have reduced operating rates," a Korean trader said.

As a result, availability of spot material in South Korea had reduced, a Korean trader said and offers were limited for spot FOB Korea cargoes in the past weeks.

 Producers and traders were also waiting at the sidelines as they expected prices to go up, traders added.

 "They are waiting for the upward market direction to emerge," the same Korean trader said.

Strengthening downstream PX values were also supporting the hike in prices, they added. 

 PX spot prices were $15-20/tonne higher on Friday at $1,260-1,265/tonne CFR Taiwan.

ICIS Copyright © Reed Business Information 2009

Author: Mahua Chakravarty
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