China mixed aromatics import margins turn positive on slumping costs

18 August 2017 04:35 Source:ICIS News

SINGAPORE (ICIS)--The theoretical import margins of mixed aromatics for Chinese importers has returned to positive territory due to sharp drops in import costs, market sources said on Friday.

The import margins rose by yuan (CNY) 151/tonne to CNY51/tonne on 17 August from minus CNY100/tonne on 10 August, according to data compiled by the China editorial team at ICIS. (please see table below).

Import costs dived by CNY251/tonne over the same period to CNY4,974/tonne, dragged by lower CFR China prices of imported material amid dropping crude values, industry sources said.

Crude values fell by $2.77/bbl to $50.33/bbl over the period on bearish sentiment.

Another reason for the shrinking costs was the depreciation of Chinese currency.

Imported cargoes were sold at CNY100/tonne lower than a week before in east China, the data showed.

Import margins are likely to be rangebound next week as international crude values are expected to be stable-to-soft and domestic sales prices of imported grades may stay low amid subdued demand.

China’s Mixed Aromatics Import Margins

Date

CFR China

Exchange rate

Import costs

Traded prices in east China

Import margin

 

($/tonne)

(1$=RMB)

(CNY/tonne)

(CNY/tonne)

(CNY/tonne)

17 Aug

584

6.6709

4,974

5,025

51

10 Aug

613

6.6770

5,225

5,125

-100

Change

-29

-0.0061

-251

-100

151

Source: China editorial team at ICIS

 




ICN

By Anna Xiang