Asia aromatics strengthen on crude rebound

27 March 2008 04:26  [Source: ICIS news]

SINGAPORE (ICIS news)--A rebound in energy values late Wednesday night lifted aromatics prices in Asia, although the increases were capped at $5-10/tonne, traders said on Thursday.

NYMEX crude futures surged past $106/bbl in Asian trade, continuing the uptrend that started overnight in the US where the futures rose nearly 5%. Resurgent gasoline prices on the back of a drawdown in inventories fuelled the crude uptrend.

In Asia, benzene and toluene saw modest increases with benzene prices rising $5/tonne over Wednesday’s close to $1,085-1,095/tonne FOB (free on board) Korea and an offer for a big berth May loading cargo was cited at $1,105/tonne FOB Korea that met a bid at $1,085/tonne FOB Korea.

Toluene values gained $10/tonne to $1,015-1,025/tonne FOB Korea for May parcels and traders said prices could see further upside in the afternoon, given the firm trend seen in the US aromatics markets during overnight trading.

Paraxylene values firmed $5-10/tonne with buying indications for May cargoes pegged at $1,295-1,305/tonne CFR (cost and freight) China/Taiwan against selling indications for $1,315/tonne CFR China/Taiwan.

Styrene prices for the second half of April lots were talked at $1,425-1,445/tonne FOB Korea, up $10/tonne on Wednesday’s level. Offers on a CFR China basis jumped to $1,490/tonne, up $20-30/tonne.

"Spot prices at $1,490/tonne CFR China seem difficult for buyers to accept at the moment," a trader based in China said. Buying ideas from Chinese end-users remained under $1,450/tonne CFR China.

Mahua Chakravarty contributed to this article

ICIS Copyright © Reed Business Information 2009

Author: Clive Ong
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