S Korea solvent-grade xylene ‘18 term tender concluded at premium

SINGAPORE (ICIS)–South Korean producers have concluded their solvent-grade xylene (SX) 2018 term discussions at the same premiums as in the previous year, market participants said on Monday.

LG Petrochemicals and Lotte Petrochemicals have each awarded a term tender for 2,000 tonnes a month of SX loading from Korea at premiums of $10-12/tonne to monthly spot FOB (free on board) Korea prices, sources said.

Their 2017 term cargoes were sold at similar premiums.

The term prices concluded were in line with general market expectations of stable cash differentials.

“I don’t see much change in fundamentals next year,” said a SX trader.

The SX market in Asia is expected to remain largely balanced in Asia, with supply in the market sufficient to meet end-user demand.

On 8 December, spot SX prices were assessed at $645-655/tonne FOB Korea, stable to lower from the price range of $650-655/tonne FOB Korea in the previous week, according to ICIS data.

Picture: Container port in Busan, South Korea. (Source: Eye Ubiquitous/REX/Shutterstock)