Updated to mid-November 2009
Asian market review by Salmon Aidan Lee, ICIS pricing
Asian paraxylene (PX) prices went on a two-month long downwards spiral in August and September to bottom out at $830-840/tonne CFR (cost and freight) Taiwan and/or China Main Port (CMP). A strong rebound was seen in October and early November that was largely led by bullishness in the key downstream purified terephthalic acid (PTA) sector.
As of 13 November, Asian PX had already regained more than 23% of its value seven weeks earlier but most market players lacked a clear price direction for the month of December on anticipated new capacity start-ups in the Middle East coupled with questions over the sustainability of PTA above the $900/tonne CFR CMP mark.
European market review by Truong Mellor, ICIS pricing
September PX contracts were settled at €760/tonne FD (free delivered) NWE (northwest Europe), a rollover from August as market fundamentals were generally unchanged. Asian PX numbers fell due to downstream bearishness, which brought European spot levels down.
October contracts saw a whopping €145/tonne drop, which many players had expected due to the volatility of crude over the course of the month as well as the slump seen in Asia. However, players did not expect the decrease to stimulate further buyer interest in Europe, which continued to look to Asia for market direction.
The resurgence in Asia seen in October and early November led to increased buying interest in Europe. However, export opportunities appeared to be short lived due to the lack of available material.
The November contract was agreed at €680/tonne FD NWE, up €65/tonne as the Asian sector firmed. Upward pressure was also seen from a weakening US dollar, and low freight rates between Asia and the ARA (Amsterdam, Rotterdam, Antwerp) region also helped to boost export opportunities.
US market review by Ryan Hickman, ICIS pricing
The PX contract market saw drastic swings in the US during October and November on volatile energy prices upstream after steady pricing from August-September.
The US benchmark price remained at 51.25 cents/lb ($1,130/tonne) in both August and September in lockstep with rollovers in Europe and Asia.
Leading into US October negotiations, downstream polyester demand in Asia dropped, spot prices slipped and Asian contracts for the month dropped considerably.
US contract talks dragged on leading to a split settlement after one producer went to other suppliers at 41.50 cents/lb while the rest of the market set 42.00 cents/lb as the October price. The decline compared with September was 9.25-9.75 cents/lb.
Crude oil and gasoline prices rose in October and initial November contracts were settled back up by 5.25-5.75 cents/lb to 47.25 cents/lb, nearly on par with July contracts.
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Paraxylene
Uses and Outlook
Paraxylene (PX) is the largest volume isomer of the mixed xylenes. Around 98% of PX is consumed in the polyester chain, mainly in the production of fibre, film and polyethylene terephthalate (PET), via one of two intermediates – purified terephthalic acid (PTA) or dimethyl terephthalate (DMT). A small amount of PX is used as a solvent and to produce di-paraxylene and herbicides.
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Paraxylene
Process Technologies
Mixed xylenes are produced by high severity catalytic reforming of naphtha, from which the C8 stream contains ortho-, meta- and para -xylenes, and ethyl benzene. Xylenes are also obtained from the pyrolysis gasoline stream in a naphtha steam cracker and by toluene disproportionation.
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