Acetone Price in India

NWE Xylenes – MX demand for mid-March

– PX spot up on stronger PTA demand

– MX M1, M2 premiums’ backwardation widens

The European mixed xylene premium for March rose $9 from Tuesday to $159/mt CIF ARA Tuesday as buying interest returned to the spot market. Following on from offers heard on Tuesday, demand appeared Tuesday for a mid-March delivery cargo. The rise in March premiums led to a widening of the March-April backwardation to $16/mt on Tuesday from $7/mt on Tuesday with market participants saying there was some length in the MX market in April due to a fall in export cargoes to India. The European paraxylene spot prices rose $4/mt for March and April on higher purified terephthalic acid futures in China. March closed at $1,014.50/mt FOB ARA while April closed at $1,011/mt FOB ARA. European orthoxylene spot prices remained flat at $990/mt FOB ARA, with the market still tightly supplied and traders rushing for import cargoes from, predominantly, South Korea.

RATIONALE:

S&P Global  assessed the March mixed xylene CIF ARA premium to Eurobob gasoline up $9 from Tuesday at $159/mt Tuesday, $1 above Total’s outstanding bid for delivery March 11-21. The April MX CIF ARA premium was stable at $143/mt on no disproving indications. March Northwest European paraxylene rose $4 to $1,014.50/mt FOB ARA, tracking the CFR Taiwan/China H1 May laycan. April rose $4 to $1,011/mt FOB ARA, tracking the CFR Taiwan/China H2 May laycan. The paraxylene 5-30 day forward spot price was assessed as the average of the period at $1,014/mt FOB ARA, up $3.50. Orthoxylene was assessed stable at $990/mt FOB ARA, with no disproving indications heard.

Asia and Middle East Naphtha Market Commentary

Supply balance in the Asian naphtha market appeared to be firmer, with more spot offers for March-loading cargoes emerging. Petron Singapore Trading  Pte. Ltd. is offering 120,000 barrels of naphtha with minimum 65% paraffin content, for lifting over March 16-18 from CBM Limay, Bataan in the Philippines. The tender closes February 20 at 0300 GMT, with validity until February 21.Yeochun NCC is seeking H1 April delivery open-spec naphtha. The tender closes February 20. Reliance Industries Ltd., offered 55,000 mt of minimum 77%paraffin content naphtha parcel for March 24-27 lifting, ex-Sikka, through a tender that closed late Thursday . That was the third March-loading naphtha parcel offered from the refiner. Award details could not be confirmed, although a few participants in the market expected the cargo to be signed for low-mid teen premiums to the March average of Mean of   Arab Gulf naphtha assessment, FOB. Further upstream, Indonesia’s PERTAMINA procured two clips of650,000 barrels of Australia’s North West Shelf condensate for April and May delivery into Tuban. Market sources said around four cargoes of NWS condensate from the March and April program have yet to be placed with end-users. Northeast Asia splitter units operators typically use NWS condensate or heavy full range naphtha as their feedstock. The second-line CFR Japan naphtha physical crack against ICE Brent crude futures had been stable, averaging$35.73/mt and $35.425/mt in the first and second week of the month. In company news, S-Oil Corp., South Korea’s third-largest refiner, will supply Won 2.61trillion ($2.32 billion) worth of refined oil products to Saudi Aram co this year, the company said Thursday . Under the contract with Aram co Trading Singapore, S-Oil will supply 11 million-13 million barrels of naphtha over January 1 to December 31, the refiner said in a regulatory filing. S-Oil, which is 63.4% owned by Aram co Overseas Co., a subsidiary of Saudi Aram co, imports most of its crude oil needs from Saudi Arabia. In November, S-Oil started commercial production at a Residue Upgrading Complex and Olefin Downstream Complex at the On san complex on South Korea’s southeast coast. The new facility produces 21,000 b/d of gasoline, 405,000 mt/year of polypropylene and 300,000 mt/year of propylene oxide.

The PBF Energy refinery in Paulsboro, N.J., uses toxic chemicals such as hydrofluoric acid. Rather than using “inherently safer” design methods, the industry says, other safety measures are taken to prevent accidents like the one in West, Texas.

Asian PX: CFR Taiwan/China gain $7.42/mt amid a rollover in backwardation

– 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.

RATIONALE:

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.

: Acetone ports prices noticed stable at Rs 40/kg week on week and expected stable in coming days

Acetone: Acetone ports prices noticed stable at Rs 40/kg week on week and expected stable in coming days due to enough inventory and slow prevailing demand in the domestic market. Booking level of the material noticed $500-505/mt as per origin not much fluctuated on the week. International Market Updates: Despite thin trading in acetone delivered in Asia, market sources said prices had risen $10- $20/mt recently as producers were keen to seize on an open arbitrage between Asia and the US and Europe. Shipping sources said 5,000 mt of acetone was quoted from Yeosu in South Korea to Houston, while 2,000 mt was heard shipped from Singapore to Rotterdam at a rate of $95/mt. FOB Rotterdam acetone prices stood at $570/mt last Friday. This resulted in a pickup in demand for Asian material, and CFR China prices were assessed up $15/mt from Friday last week at $460/mt Friday, while CFR India was assessed up $5/mt over the same period at $505/mt.

Prices rise tracking increases in Asia

– March traded at $1005/mt

– Asian markers up $3/mt on the day

European spot prices rose tracking earlier increases in Asia. S&P Global CSG assessed styrene for loading 5-30 days forward at $994/mt FOB ARA Wednesday, up $1.50/mt on the day. Buying interest continued on Wednesday as March cargoes were heard traded at $1,005/mt. “It seems [the market] is starting to pick up, especially the forward months which we can see from the prices,” a distributor said. Demand has picked up this month on expectations of turnarounds in the second quarter. Market participants were said to be waiting for movement in Asia, particularly China. High stocks in China were limiting shipments from Europe, sources said. Chinese inventory levels were last heard at 306,500 mt on Wednesday. The distributor added that European prices will be driven by Chinese supply and demand. Early discussions of the March contract price settlement were heard, and a source expected a small increase following an uptick in the spot market. “Considering benzene and ethylene costs, spot prices and buying activity, I expect a Eur20-25/mt increase,” the distributor said. In Asia, styrene rose $3/mt day on day to $1,077/mt CFR China and $1,027/mt FOB Korea Wednesday.

RATIONALE:

S&P Global CSG assessed styrene for loading 5-30 days forward at $994/mt FOB ARA Wednesday, up $1.50/mt on the day. February was assessed at $981/mt, up $5/mt on the day, $1 above the bid heard at $980/mt with the offer at $990/mt. March was assessed at $1,005/mt, down $4/mt in line with two trades heard at $1,005/mt and also within a bid offer range of $1,000-1,010/mt.

Fundamentals remain tight in Europe

European toluene started the week with fundamentals unchanged. The market entered a tight supply environment in January, as production issues in Europe followed the seasonal malaise over the winter holidays. The production difficulties in question for toluene are expected to be resolved by the end of the month, according to sources. Arbitrage opportunities for the toluene market remained shut at the end of last week, with European pricing higher than forward dates seen in the US and in Asia. The Asian market slipped $12/mt on Tuesday to $595/mt FOB Korea and $629/mt CFR China. End-users were in no rush to buy toluene or MX, sources said, as factories were yet to restart following the Lunar New Year holidays. Downstream plastics demand has been a demand-booster globally for toluene, with paraxylene margins through disproportionation of toluene consistently positive. This spread was last seen at $306/mt in Europe on Tuesday. Increased demand was seen in the US on Tuesday, with prices up by 4 cents to 221 cents/gal (around $682/mt). Supply in the US market was also described as tight, matching Europe.

RATIONALE:

S&P Global CSG assessed the CIF ARA toluene premium over Eurobob gasolineat $185/mt for February on Tuesday, stable from Tuesday. A trader indicated that the market was unchanged, with outright prices in a range of $690-$700/mt. Movement in Eurobob barge swaps for February did not disprove the premium. The March premium was assessed at $182.75/mt, stable from Tuesday with no disproving indications.

Phillips 66 lifts Lukoil

Phillips 66 lifted Lukoil’s offer in the Market on Close assessment process Friday, narrowing the discount to Northwest Europe. Lukoil came in with an offer at 157 cents/gal FOB USG, walking it down to 156.75 cents/gal FOB USG, where it was lifted by Phillips 66. Friday’s trade moves the discount to the FOB ARA marker to minus 1.17 cents, down from minus 3.49 cents Wednesday, as Gulf Coast pricing neared parity with Northwest Europe. Last Friday, the previously stable premium reversed into a discount, where it has remained for the entirety of the week. Sources have attributed weaker pricing to situations unfolding in Venezuela and Mexico, with multiple participants pointing to length in the market. Related energy softened day on day, with NYMEX March RBOB falling 3.33 cents day on day to $1.4258/gal. Blended and shipped values were last estimated at near 208 cents/gal while the MTBE factor relative to gasoline was 1.0944. Elsewhere, the FOB Singapore was $2 lower at $613/mt while FOB ARA fell 5.07 cents to 157.92 cents/gal.

RATIONALE:

Spot USG MTBE was assessed Friday at 156.75 cents/gal FOB USG, down 2.75 cents day on day, in line with a deal done in the Csg Market on Close assessment process.

pexels-photo-261706-min
pexels-photo-261706-min

Solvent mixed xylene noticed lower

Solvent-grade mixed xylene was assessed $10/mt lower week on week on Friday at $610/mt FOB Korea on lower selling ideas, while demand — particularly from China — remained sluggish due to the Lunar New Year holidays. Many market participants were already absent from the market. Meanwhile, South Korean parcels were moving into Southeast Asia, where margins were better than China, market sources said. In plant news, Korea Petrochemical Industry Co. plans to shut its benzene-toluene-xylene plant in Onsan for about one month of maintenance in April, a market source said. The plant has the capacity to produce 180,000 mt/year of benzene, 70,000 mt/ year of toluene and 40,000 mt/year of solvent-grade mixed xylene. South Korea’s LG Chem is planning to shut its Daesan aromatics plant for 35 days of maintenance in March, a source close to the company said. The plant can produce 24,000 mt/year of solvent-grade mixed xylene, along with 264,000 mt/year of benzene and 54,000 mt/year of toluene. Maintenance at the plant will overlap with the turnaround at the upstream cracker, as previously reported by  . MX inventories in eastern China were heard to be steady at around 61,000 mt. Rationale Solvent-MX was assessed down $10/mt week on week at $600/mt FOB Korea Friday on the back of lower discussions. A deal at $625/ mt FOB Korea was not considered in the assessment as the size was too small. Another producer said $590/mt FOB Northeast Asia might be a workable price, although similarly acknowledged it was not a firm offer. No bids or offers were heard during the  Market on Close assessment process. The CFR China marker was assessed at $620/ mt, unchanged on thin trade and prevailing discussions. The Southeast Asia marker was assessed at $660/mt CFR, reflecting decreases in the broader market. The CFR India marker was assessed at $664/ mt, down $10/mt, based on the freight differential of $64/mt between Korea and India.

Acetic acid and VAM market update

Asian acetic markets were steady this week, and had yet to catch up with upstream methanol markets, which have firmed over the past two weeks oversupply issues. A stronger Chinese yuan lent support to China’s domestic and FOB prices in the past month. As such, domestic prices this week were little changed from last week, at around Yuan 3,150/mt Friday, up Yuan 50/mt on week. The Chinese yuan has risen 3.3% since October on optimism that the US-China trade tensions will ease, and the two major economies could reach a trade deal soon. Meanwhile, demand for acetic acid across Northeast Asia, Southeast Asia and South Asia was stable amid ample supplies. “We have to wait for real market direction after the Lunar New Year,” a trader said.

VAM: Upstream ethylene prices have firmed considerably over the past nine weeks, and ethylene-based vinyl acetate monomer producers were feeling the pinch to raise prices, trade sources said. The CFR Northeast Asia ethylene marker was assessed at $1,075/mt Friday, up $35/mt from Thursday, and was last higher at $1,090/mt CFR on October 19,   data showed. Trade sources said they expect Asian VAM markets to become tighter after the Lunar New Year holidays, as producers prioritize shipments to Europe, as the first non-EU 350,000 mt imports enjoy tax concessions. RATIONALE: AA: The CFR Far East Asia and the Southeast Asia AA markers were both unchanged from last week at $445/mt CFR, based on stable market fundamentals. The FOB China price was up $2/mt at $401/mt, against buying indications hear around $395/mt FOB, and discussions at $400-$405/mt FOB. The CFR South Asia marker was assessed at $435/mt, unchanged from last Friday, against offers heard at $430-$440/mt CFR India. VAM: CFR China was assessed at $930/mt Friday, stable from last Friday, amid thin trading. The CFR Southeast Asia and CFR South Asia prices were unchanged week on week at $895/mt and $830/mt, respectively, amid stable market fundamentals.

Ethylene prices noticed strong in Asia

Asian ethylene continued firming Friday, rising $10/mt day on day, buoyed by healthy spot demand in China ahead of the Lunar New Year holidays next week. On a week on week basis, spot prices rose $45/mt. Participants were completing last minute buying in the spot market this week, driven by firm demand from the styrene monomer sector where margins have been positive. This week, the Asian styrene monomer margin was hovering above $100/mt, in line with firmer spot styrene prices, according to data. Market sources said spot demand also emerged in China for ethylene-oxide following the recent EO capacity expansion there. Asian monoethylene glycol margins have been hovering at around minus $150-$180/mt this week,  data showed. Looking forward, market sources said it was unclear if Asian ethylene would continue rising as margins for most ethylene derivatives were currently negative. Asian polyethylene ethylene margin was calculated at minus $45/mt Friday, much lower than a typical breakeven spread of plus $150/mt, according to data. Some market sources said integrated producers would start considering selling spot ethylene cargoes, reducing their downstream plant runs amid positive ethylene margins. The recent strength in Asian ethylene pushed up the ethylene-naphtha spread above $570/mt this week, the highest level since September 2018,  data showed. The spread is higher than a breakeven spread of $350/mt. Rationale Spot prices rose $10/mt day on day to be assessed at $1,085/mt CFR Northeast Asia and $985/mt CFR Southeast Asia Friday. The tradable level was in the high-$1,000s/mt CFR Northeast Asia and high-$900s/ mt CFR Southeast Asia Friday. Rationale CFR China MEG price was assessed flat day on day at $625/mt on Friday for 15-30 days forward cargoes, reflecting a trade discussion heard at this level, and below an offer heard at $630/mt. China domestic price was assessed flat at Yuan 5,100/mt over the same period, reflecting tradable discussions heard at this level. CFR Southeast Asia MEG was assessed up $7/mt week on week at $630/mt on Friday, for 15-30 days forward cargoes, amid thin trade discussions, $5/mt higher than the CFR China marker.