Para/Ortho-Xylene

PARAXYLENE

Paraxylene (PX) is the largest volume isomer of the mixed xylenes. Around 98 percent of PX demand comes from the polyester chain via the one of its intermediates purified terephthalic acid (PTA) or dimethyl terephthalate (DMT). The breakdown for polyester demand is 65 percent from fibre, 27 percent from polyethylene terephthalate (PET) bottle resin and the remainder from film and other plastic end uses. Polyester demand is expected to grow at six percent a year over the next few years with the PET resin bottle market seeing the fastest growth. A small amount of PX is used as a solvent and in the production of di-paraxylene and herbicides.

Paraxylene is a flammable liquid and a fire hazard. When heated to decomposition, paraxylene emits acrid smoke and fumes. Vapours may travel to a source of ignition and flash back.

 

ORTHOXYLENE

Orthoxylene (OX) is the second largest of the three commercial isomers of xylene. Almost all OX produced is consumed in the manufacture of phthalic anhydride, which is converted to plasticisers, alkyd and polyester resins. Small quantities are used in solvent applications and to make bactericides, soybean herbicides and lube oil additives. It is also used to make phthalonitrile, which is converted to copper phthalocyanine, a pigment.

Orthoxylene is a flammable liquid and a fire hazard. When heated to decomposition, orthoxylene emits acrid smoke and fumes. Vapours may travel to a source of ignition and flash back.

 

ICIS pricing quotes paraxylene and orthoxylene in combined reports published separately in Europe, Asia-Pacific and the US Gulf.

 

Frequency:

• Aromatics Daily (Europe) published on Mondays to Fridays
• Para-xylene Daily (Asia) published on Mondays to Fridays

• Para/Ortho-xylene weekly (Europe, Asia-Pacific and the US) reports published on Fridays

• Real time Price Alert Service (PAS) delivering market news and trends throughout the day.

 

Paraxylene (EUROPE)

Daily Price Assessments

Paraxylene Spot Prices

• FOB RDAM  current month (USD/MT & conversion to US CTS/LB)

Weekly Price Assessments:

Paraxylene Contract Prices

• FD NWE monthly (EUR/MT & conversion to US CTS/LB)

Paraxylene Spot Prices

• FOB RDAM (*) (USD/MT & conversion to US CTS/LB)
• FOB RDAM (+) (USD/MT & conversion to US CTS/LB)

NOTE:(+) Price range for the week

(*) Price range at close of business Friday (1700 hours)

 

Orthoxylene (EUROPE)

Weekly Price Assessments:

Orthoxylene Contract Prices

• FD NWE (quarterly) (EUR/MT & conversion to US CTS/LB)

Orthoxylene Spot Prices

• FOB RDAM (*) (USD/MT & conversion to US CTS/LB)
• FOB RDAM (+) (USD/MT & conversion to US CTS/LB)

NOTE:(+) Price range for the week

(*) Price range at close of business Friday (1700 hours)

 

 

Paraxylene (ASIA-PACIFIC)

Daily Price Assessments:

Paraxylene Spot Prices

• FOB KOREA (USD/MT & conversion to US CTS/LB)
• CFR TAIWAN (USD/MT & conversion to US CTS/LB)
• CFR CHINA MAIN PORT (USD/MT & conversion to US CTS/LB)

Weekly Price Assessments:

Paraxylene Spot Prices

• FOB KOREA (*) (USD/MT & conversion to US CTS/LB)
• CFR TAIWAN (*) (USD/MT & conversion to US CTS/LB)
• CFR CHINA MAIN PORT (*) (USD/MT & conversion to US CTS/LB)
• CFR S.E.ASIA (*) (USD/MT & conversion to US CTS/LB)

Paraxylene Spot Prices

• FOB KOREA (+) (USD/MT & conversion to US CTS/LB)
• CFR TAIWAN (+) (USD/MT & conversion to US CTS/LB)
• CFR CHINA MAIN PORT (+) (USD/MT & conversion to US CTS/LB)
• CFR S.E.ASIA (+) (USD/MT & conversion to US CTS/LB)

NOTE:   (+) Price range for the week

   (*)Price range at close of business Friday (1730 hours)

 

Paraxylene Contract Prices

• CFR ASIA Quarter (USD/MT & conversion to US CTS/LB)
• CFR ASIA Month (USD/MT & conversion to US CTS/LB)

 

 

Orthoxylene (ASIA-PACIFIC)

Weekly Price Assessments:

Orthoxylene Spot Prices

• CFR N.E.ASIA (USD/MT & conversion to US CTS/LB)
• FOB N.E.ASIA (USD/MT & conversion to US CTS/LB)
• CFR S.E.ASIA (USD/MT & conversion to US CTS/LB)
• CFR INDIA (USD/MT & conversion to US CTS/LB)

 

Paraxylene (US GULF)

Weekly Price Assessments:

Paraxylene Contract Prices

• DELIVERED Monthly (US CTS/LB & conversion to USD/MT)

Paraxylene Spot Prices

• FOB EXPORT (US CTS/LB & conversion to USD/MT)

 

Orthoxylene (US GULF)

Weekly Price Assessments:

Orthoxylene Contract Prices

• FOB monthly (US CTS/LB & conversion to USD/MT)

Orthoxylene Spot Prices

• FOB EXPORT (US CTS/LB & conversion to USD/MT)

 

General Information:

Assessment window: Weekly price assessments are based on information supplied by market participants through the week up to close of business on Fridays at 1700 hours in London and Houston (US Central Time), and at 1730 hours in Singapore.

Daily price assessments for the daily Aromatics (Europe) and Para-xylene (Asia) reports are based on information gathered throughout the day, including the day’s bid-offer range and all deals done during the day, to close of business at 1700 hours in London and at 1730 hours in Singapore. On days with deals, the assessment will reflect deals alone. On days without deals, the assessment will reflect bids and offers alone. On days with only one deal, the assessment will reflect that deal as well as bids and offers.

 

Specification: In Europe and the US, the paraxylene price quotes are based on product with 99.7% purity, while in Asia it is 99.5% pure.

Orthoxylene assessments are based on product with a minimum purity of 98.5% and a maximum non-aromatic content of 0.5%.

 

Timing: In Europe, cargoes are typically for loading or delivered four weeks forward from the date of publication. For deep-sea cargoes, in Asia assessments cover loading (FOB) or delivered (CFR) eight weeks forward from the date of publication. In the United States, waterborne volumes are for loading or delivery within four weeks.

 

Terms: Typically 30-60 days after bill of lading date. In Asia, it is up to 90 days.

 

Standard cargo size: Paraxylene in Europe is typically 1,000 tonnes and 5,000 tonnes in Asia and the US, unless otherwise stated.

Orthoxylene in Asia is typically 2,000-3,000 tonnes. European spot cargo sizes are typically 1,000 tonnes. In the US, cargoes are typically 3,000-5,000 tonnes depending on destination.

 

Assessment basis: In Europe, where the weekly report includes both the week’s spread and Friday close prices, these are quoted separately. The price spread for the week is shown in reports as (+) and represents deals done. On the infrequent occasions when there are insufficient deals in the week to establish a representative weekly range and relying on deals alone does not reflect the market fairly and objectively for the week, ICIS pricing reserves the right to make an editorial judgment based on a combination of: the correlation between the current month and forward month; and bids and offers for that month.

The price spread at Friday close is shown as (*) and represents the bid/sell range at the Friday deadline at 1700 hours London time. In the absence of confirmed business, quoted spot prices may reflect discussion levels or the current levels of bids and offers. The monthly contract price is quoted as soon as confirmation has been received from a representative number of arm’s length contractual partners. The market commentary will normally cover details of contracts, negotiations, spot prices, production issues, relevant logistics, derivatives markets and energy prices.

The Aromatics Daily (Europe) report includes paraxylene spot transactions in USD/tonne on a CIF Amsterdam/Rotterdam/Antwerp basis. The price window reflects business for the current month, which will be abbreviated next to the quote (eg. JAN, FEB). The month will switch to the following month around mid-month, at that point when the majority of trade is being done for the following month. Prices are assessed based on information gathered throughout the day, including the day’s bid-offer range and all deals done during the day, to close of business. On days with deals, the assessment will reflect deals alone. On days without deals, the assessment will reflect bids and offers alone and can only use the correlation between the current month and the forward month. On days with only one deal, the assessment will reflect that deal as well as bids and offers.

 

The paraxylene section of the European report includes information on contract price discussions and agreements and a detailed update on the spot market. Spot deals are reported, typically on an FOB Rotterdam basis. Transactions may include both trade and industry players and may involve product for use within Europe or for export to Asia or the US. Prices are often volatile, and may change significantly, meaning there are frequently opportunities for arbitrage and movements of product between regions. 

 

The orthoxylene market in Europe tends to exhibit limited activity as most product is bought and sold on a quarterly contract basis. The market is small, and a limited number of players are involved in spot transactions, usually on an FOB Rdam basis, but sometimes on an FOB Germany basis.  Spot prices are assessed based on bids and offers in the market or market talk, when no deals are reported. Contract prices are usually agreed at the beginning of the quarter. Product seldom moves on a spot basis between regions, but there can be some Russian material in the European market and some European product flowing to Asia, when prices warrant these trade flows.

 

The ICIS Asia-Pacific para-xylene weekly prices are assessed both (*) at the end of the week up to Friday close, due to the volatile nature of the market, and (+) based on the whole week’s deals and discussion levels.

 

The published ranges represent a combination of the following price indications: the deals concluded, bids and offers, buy and sell indications and notional discussions.

 

In the absence of deals, assessments based on bids and offers will be made to accurately reflect the levels at which business would probably have taken place during the week or at the Friday close of business. Factors affecting price movements, including the supply and demand situation, plant operating rates, feedstock and derivative markets, cargo movements, and general sentiment, will also be taken into account. The commentary includes orthoxylene price trends at the latter part of the report.

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