– April trades twice at $1,115/mt CFR
– April/May backwardation assessed at $4.75/mt
Asian paraxylene prices rose $7.42/mt from last Tuesday to be assessed at $1,113.42/mt CFR Taiwan/China, and up $7.75/mt at $1,094.42/mt FOB Korea Tuesday, amid a rollover of laycans in backwardation. Activity in the S&P Global Market on Close assessment process has shifted firmly to April-delivery cargoes following March declaration, with two April cargoes traded in the MOC process Tuesday at $1,115/mt CFR Taiwan/China for both deals. Firm demand for April cargoes had maintained a backwardated structure between April and May laycans, with the April/May backwardation assessed at $4.75/mt at the close of Asian trade Tuesday. No trades were seen for May as sellers kept offers firm, while buyers were tentative in matching higher offers in the market, wary of increased Asian spot supply next month originating from Southeast Asia, with both Thailand’s PTTGC and Indonesia’s TPPI offering additional spot PX for March loading.
Asian PX prices rose $7.42/mt from Tuesday, assessed at $1,113.42/mt CFR Taiwan/China and up $7.75/mt at $1,094.42/mt FOB Korea Tuesday, amid a rollover of laycans. The markers take an average of the H1 and H2 April and H1 May laycans. The April laycans were assessed at $1,115/mt CFR Taiwan/China, below an outstanding April offer from Oman Trading International at $1,119/mt, and considering the level of the last April trade between GS Caltex and Mercuria. The H1 May laycan was assessed at $1,110.25/mt, above an outstanding May bid from GS Caltex at $1,110/mt, and below an outstanding offer from BPSG at $1,115/mt. The H1 May laycan was also assessed at a $4.75/mt backwardation to the April laycans, considering an outstanding Apr/May Asian-origin timespread bid from Mercuria at $5.50/mt. The above rationale applies to the following market data codes: “”PHASS05″” for FOB Korea and “”AAQNE00″” for CFR Taiwan/China.