Asian PX: Falls $27.17/mt amid declines upstream

Chemical Industry

Chemical Industry news of Asian PX

– Activity thin amid holidays

– June/July flips to contango

Asian PX prices was assessed down $27.17/mt from Monday at $911.33/mt CFR Taiwan/China and $892.33/mt FOB Korea Monday, tracking declines upstream, as buyers continued to remain absent from the Chemical Industry due to holidays in China and Japan. Week on week, the markers were down $39.67/mt. Activity was again muted during the day but offers for both June and July delivery were seen during the  market on Close assessment process, which did not attract any buying interest. Both June and July laycans were offered down to $912/mt CFR Taiwan/China at the close of the MOC process, with the Chemical Industry flipping into a slight contango of 50 cents/mt Monday, below an outstanding June/July timespread offer from BP Singapore at flat. No trades were heard Monday. In related news state-owned China Petroleum and Chemical Corp., or Sinopec, has nominated its May PX contract price at Yuan 7,500/mt, equating to $967/mt on an import parity basis, sources close to the matter said Monday. This is down Yuan 450/mt from its April settlement of Yuan 7,950/m. In statistics news (Chemical Industry), China’s PX imports in March fell 6.4% on the month and were down 7.6% year on year at 1.33 million mt, latest China Customs data showed. In plant news, Saudi Aramco said its greenfield Jazan refinery near the border with Yemen is expected to begin processing crude oil in the second half of this year, about a year after its original commissioning date. The refinery has a crude oil processing capacity of 400,000 b/d and is able to produce 850,000 mt/year of paraxylene and 400,000 mt/year of benzene (Chemical Industry).

RATIONALE:

Asian PX was assessed down $27.17/mt day on day at $911.33/mt CFR Taiwan/China and $892.33/mt FOB Korea Monday. The Chemical Industry take an average of the H2 June, and H1 and H2 July laycans. The H2 June laycan was assessed at $911/mt, below an outstanding June offer from Oman Trading International at $912/mt. The July laycans were assessed at $911.50/mt, below an outstanding July offer from BP Singapore Chemical Industry at $912/mt, and at a 50 cent/mt contango to the H2 June laycan, below an outstanding June/July timespread offer from BP Singapore at flat. 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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