SINGAPORE (ICIS)--Import margins of mixed aromatics in China widened this week on the back of lower costs, market sources said.
The import margin was assessed at yuan (CNY) 173/tonne on 8 February, up by 27% or CNY37/tonne week on week, according to ICIS data.
Import costs fell as Brent crude prices dived following the crash in US stock markets and continuous increase in US crude inventories, according to market participants.
Weaker Brent values also dragged down selling prices of imported mixed aromatics in the domestic market. However, the drop in prices were countered by pre-holiday stockpiling activities, market sources said.
The China market will be closed on 15-21 February for the Lunar New Year holiday.
Domestic selling prices are likely to be stable next week as market participants will not be active during the holiday period. Consequently, import margins are likely to be range-bound in the coming week, market sources said.