– April-May backwardation widens
– Three trades during MOC
Asian paraxylene rose day on day by $2.50/mt to $1,117.33/mt CFR Taiwan/China and $1,098.33/mt FOB Korea, on firmer sentiment amid rising upstream markets Tuesday. Front-month May crude oil futures gained $1.02/b from Tuesday to $66.52/b at the close of Asian trade Tuesday. In the S&P Global Market on Close assessment process, an Asian-origin April/May timespread bid by GS Caltex traded twice at plus $5/mt, while an open origin May-delivery cargo was sold by Oman Trading International to Glencore Singapore at $1,116/mt CFR Taiwan/China. Meanwhile, outstanding April bids by Hengli and Litasco at $1,112/mt CFR Taiwan/China and $1,115/mt CFR Taiwan/China respectively stood at the close of the MOC process, with no traders expressing any further interest. In tender news, India’s OMPL sold two cargoes of 15,000 mt each for April 1-30 loading in a spot tender which concluded last week, at a discount of around $30/mt to the monthly average of CFR Taiwan/China PX marker based on loading month, FOB New Mangalore basis, market participants with knowledge of the matter said on Tuesday.
Asian PX prices rose $2.50/mt day on day to $1,117.33/mt CFR Taiwan/China and $1,098.33/mt FOB Korea Tuesday. The markers take an average of the H2 April, H1 May and H2 May laycans. The H2 April laycan was assessed at $1,120/mt CFR Taiwan/China, below an outstanding April offer by BP Singapore at $1,127/mt, and above an outstanding Asian-origin April bid from Litasco at $1,115/mt. The May laycans were assessed at $1,116/mt, at the level of the last trade for May between Glencore and Oman Trading International at $1,116/mt, above an outstanding Asian-origin bid by GS Caltex at $1,112/mt, and below an outstanding May offer from BP Singapore at $1,123/mt. The May laycans were assessed at a $4/mt backwardation to the H2-April laycan, at the level of the last April/May timespread trade for Asia-origin at $5/mt between BP Singapore and GS Caltex. The timespread trade was normalized due to a restriction in origin. The rationale applies to the following market data codes: “PHASS05” for FOB Korea and “AAQNE00” for CFR Taiwan/China.