AFPM ’19: Asia-to-US MX arbitrage open but poses challenges

SAN ANTONIO (ICIS)–Despite the open US-to-Asia arbitrage for mixed xylenes (MX), Asian MX cargoes to the US are limited amid ongoing shipping constraints, sources said on Monday.

Spot vessel availability is low for March and April, sources said, as demand from the gasoline-blending sector and solvents market increases.

The sources were speaking on the sidelines of this year’s International Petrochemical Conference (IPC).

One source said there is not enough material available to load on a barge to the US, prompting those with material to sell to other regions instead.

The US is in need of imports, however, amid short supply amid preparation for the spring gasoline season and following last week’s tank fires and chemicals leak at Intercontinental Terminals Company’s (ITC) facility in the US Gulf Coast.

A lack of imports and ongoing constraints in the domestic market are thus likely to put major upward pressure on US spot MX in April until the ITC situation is resolved and shipping constraints lifted.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC takes place on 24-26 March in San Antonio, Texas.