Asian Iso-MX: Slides $1-$5/mt as PX weakens

Chemical Industry

– H2 May FOB Korea cargo trades

– Crude rises $1.30/b on day

Asian isomer-grade mixed xylene prices slipped day on day by $5/mt to $721/mt FOB Korea and by $1/mt to $738/mt CFR Taiwan Thursday, as downstream paraxylene prices were seen under pressure. MX prices dropped despite firm downstream crude oil. June ICE Brent crude futures rose $1.30/b to $72.13/b at 0830 GMT in Asian trade. A trader noted that sentiment in the MX market was getting weaker, adding that MX and PX had decoupled recently and PX price moves had less impact on MX prices currently. The same trader added that prices could not fall drastically, as demand was stable from Chinese buyers at $735-$740/mt CFR China. A separate trader agreed that prices in MX were more likely to move lower.

RATIONALE:

Isomer-MX was assessed lower day on day by $5/mt at $721/mt FOB Korea and by $1/mt at $738/mt CFR Taiwan Thursday. The markers take the average of the third and fourth half-month laycans, currently second-half May and H1 June. No bids or offers were registered during the  Market on Close assessment process. During the  Market on Close assessment process, a cargo for H2 May loading was heard offered by Samsung C&T at $721/mt FOB Korea, at which it traded, with GS Caltex being the buyer. The H2 May laycan was assessed at the deal level of $721/mt FOB Korea, and H1 June flat to H2 May was also assessed at $721/mt FOB Korea. No bids or offers were heard for CFR Taiwan, but the marker was assessed lower by $1/mt, tracking FOB Korea prices. The above rationale applies to the following market data codes: PHAUV00 for FOB Korea and PHAUT00 for CFR Taiwan.

 

Chemical Industry
Chemical Industry

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