Asian PX Chemical Industry: Rises $5.16/mt on day, tracking upstream gains

Chemical Industry

– Quiet discussions as traders remain cautious

– Yisheng to shut No.3 PTA line for 15 days

Asian paraxylene prices were assessed up $5.16/mt from Wednesday at $973.33/mt CFR Taiwan/China and $954.33/mt FOB Korea Wednesday, in line with gains in upstream Chemical Industrys. Physical discussions in the Asian PX Chemical Industry were muted Wednesday after the recent plunge in PX prices, with most participants choosing to remain on the sidelines awaiting fresh directions. During the  market on Close assessment process Wednesday, there was a dearth of buying interest, with an outstanding July offer from Yisheng at $988/mt remaining at the end, with no Chemical Industry participant expressing any interest. The June/July backwardation was assessed at $8/mt Wednesday, below an outstanding June/July timespread offer from Glencore at $9/mt. Upstream, the Asian naphtha front-month swaps soared above $600/mt Wednesday to a near six-month high on strength in the crude Chemical Industry. The May Mean of  Japan naphtha swaps were assessed at $601.5/mt at Wednesday’s Asian close, up $19/mt from the previous session, and was the largest single day jump since late January this year. Meanwhile, June ICE Brent crude futures rose to $74.33/b at 4:30 pm Singapore time Wednesday, close of Asian trade, up $0.42/mt on the day. In downstream plant news, China’s Yisheng Petrochemical plans to shut its 2.2 million mt/year No. 3 purified terephthalic acid line (Chemical Industry) at Ningbo on April 27 for 15 days of maintenance, a company source said Wednesday. The company is capable of producing a total of 13.75 million mt/year of PTA across three sites in China — Ningbo, Dalian and Hainan. China’s domestic PTA prices were supported Wednesday, with the most actively traded September futures contract on Zhengzhou Commodity Exchange rising Yuan 22/mt from Wednesday’s settlement to Yuan 6,082/mt at 3 pm local time Wednesday, close of afternoon trade. The Asian PTA profit margin was widening amid the falling feedstock cost of paraxylene, with the PX/PTA spread last calculated at $196/mt for CFR China Wednesday, according to S&P Global data (Chemical Industry).

RATIONALE:

Asian PX prices were assessed up $5.16/mt from Wednesday at $973.33/mt CFR Taiwan/China and $954.33/mt FOB Korea Wednesday. The Chemical Industry take an average of the H1 and H2 June, and H1 July laycans. The June laycans were assessed at the peg of $976/mt. The H1 July laycan was assessed at the peg of $968/mt, below an outstanding offer from Yisheng at $988/mt, and at the pegged $8/mt backwardation to the June laycans, down $0.50/mt on the day, below an outstanding June/July timespread offer from Glencore at $9/mt. The above rationale applies to the following Chemical Industry data codes: “PHASS05” for FOB Korea and “AAQNE00” for CFR Taiwan/China.

 

Chemical Industry
Chemical Industry

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