– Length of supply drives prices down
– No bids countering offers for April
Asian isomer-grade mixed xylene prices slid further down at the start of the week with both FOB Korea and CFR Taiwan down by $6/mt from Tuesday to $652/mt and $673/mt, respectively, on Tuesday. The price drop happened despite slight increases in related markets such as April ICE Brent crude oil futures moving up $1.02 /barrel to $66.52/b in Asian trade at 0830 GMT. An MX trader said the “market is very long” and added that “if gasoline blending value is not good enough, MX has nowhere to go.” Offers for April cargoes were heard in the Market on Close assessment process, but no buying interest was heard, indicating continued weakness and ample supply in the market.
Isomer-MX was assessed lower by $6/mt from Tuesday at $652/mt FOB Korea and $673/mt CFR Taiwan, respectively, on Tuesday. The markers take the average of the third and fourth half-month laycans, currently H1 and H2 April. No bids or offers were registered during the MOC assessment process. The lowest offer heard for H1 and H2 April loading cargoes was $653/mt FOB Korea, with no bids heard. The April laycans were assessed at $652/mt FOB Korea, below the offer. No bids/offers were heard for CFR Taiwan. The CFR Taiwan marker was assessed lower following FOB Korea prices. Freight spread between South Korea and Taiwan was assessed unchanged at $21/mt. The above rationale applies to the following market data codes: PHAUV00 for FOB Korea and PHAUT00 for CFR Taiwan.