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Para Ortho xylene Methodology

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:

  • 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)

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)
  • 50% Asia Contract Price of delivery month + 50% spot average of published CFR Taiwan/ China Main Port prices of delivery month +/- Alpha

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)
  • 50% Asia Contract Price of delivery month + 50% spot average of published CFR Taiwan/China Main Port prices of delivery month +/- Alpha (*)

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)
  • 50% Asia Contract Price of delivery month + 50% spot average of published CFR Taiwan/China Main Port prices of delivery month +/- Alpha (+)

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)
  • DELIVERED CHINA Month (CNY/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 Para-xylene (Asia) report is 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 1730 hours in Singapore.

In Asia, ICIS assesses the discounts/premiums (Alpha) for spot cargoes traded on a 50% Asia Contract Price + 50% spot average of published CFR Taiwan/China Main Port for delivery to any China Main Port and Taiwan. The Alpha will be assessed in line with general methodology with deals precedence over bids and offers. On days without deals, the assessment will reflect bids and offers alone.

Specification: In Europe, the US and Asia the paraxylene price quotes are based on product with 99.7% purity.

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.

Location basis: FOB Korea (Ulsan, Onsan, Daesan, Yeosu); CFR Taiwan (Kaohsiung, Taichung, Mailiao, Taichung); CFR China Main Port (Ningbo, Xiamen, Zhuhai, Jiangyin), CFR SE Asia (Merak, Jakarta, Kuantan, Map Ta Phut)

Terms: Typically 30-60 days after bill of lading date. In Asia, typical credit terms for para-xylene are up to 60 days. Variance to these terms in a spot transaction may lead to ICIS disregarding the transaction for assessment purposes.

ICIS may also perform a normalising procedure for transactions that were done on a LC 90 days basis using the prevailing inter-bank exchange rate.

Standard cargo size: Paraxylene in Europe is typically 1,000 tonnes and 5,000 tonnes in Asia and the US, unless otherwise stated. In Asia, deals of at least 5,000 tonnes each done via pipeline with no freight costs are also considered in FOB assessments.

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 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 ICIS Asia-Pacific para-xylene weekly prices are assessed two ways: 1) at the end of the week up to Friday close marked by (*), and 2) based on the whole week’s deals and discussion levels marked by (+).

The weekly (+) and daily assessments are assessed independently, without any associated netback calculations. In line with the general methodology, the weekly price range will represent confirmed deals during the week. The mid-point of the range will represent the mean/average of market deals which attract the most number of trades concluded during the week.

The weekly (+) assessment of the Alpha for spot cargoes traded on a 50% Asia Contract Price + 50% spot average of published CFR Taiwan/China Main Port prices represents the mean/average of the daily (*) assessments of the premiums/discounts for the relevant period.

The assessments of the Alpha currently disregards PX of Taiwanese and South East Asian origins as import tariffs on cargoes of these origins differ from cargoes of other origin and commands a considerable premium/ smaller discount.

During illiquid trading gaps when there are insufficient deals in the week to establish a fair representative weekly range, ICIS pricing will exercise editorial discretion using a combination of: 1) the correlation between the current month and forward month; 2) and best bids/offers for that month.  

The ICIS Xylenes Daily (Asia Pacific) report includes paraxylene spot transactions in USD/tonne on a CFR Taiwan/China Main Port and FOB Korea basis. On days with deals, the assessment will reflect deals alone. On days without deals, the assessment will reflect bids and offers alone.

In the absence of active trade activity, ICIS may also choose to perform a netback calculation (i.e FOB prices derived from CFR numbers - freight) in the event of no discussion about FOB Korea.

ICIS currently reserves the right to disregard discussions/deals for PX paper swaps, which are negotiated on a 1,000 tonne basis, should they fall significantly out of line from price assessments for the physical market, which is usually negotiated on a 5,000 tonne basis.

16 February 2012