Aian PX Price

Asian PX Chemical Industry: Down $2.08/mt with limited discussions

Chemical Industry

Chemical Industry Asian PX

– July cargo traded at $901/mt CFR in MOC

– FCFC shuts 1.2 mil mt/year Ningbo PTA plant

Asian PX Chemical Industry prices were assessed down $2.08/mt from Wednesday at $902.67/mt CFR Taiwan/China and $883.67/mt FOB Korea Friday, as discussions remained limited amid uncertain market outlook. In the market on Close assessment process Friday, a solitary July delivery cargo was sold by Mercuria to Litasco at $901/mt CFR Taiwan/China Chemical Industry. While no trade for June was done during the MOC, earlier in the afternoon a June-delivery Asian-origin cargo was sold to Itochu by PetroChina at $910/mt CFR, but offers fell lower later, with a June offer from OTI at $907/mt CFR standing at the close of MOC without any buyers expressing interest. “Due to current turnarounds in Northeast Asia, Asian-origin cargoes are unusually tight, and the premium to open-origin cargoes currently stands at at least $3/mt,” said a trader. An Asian-origin June bid from Total Singapore Chemical Industry at $910/mt CFR remained standing at close of MOC, without any sellers expressing interest. In plant news, China’s Hengli Petrochemical (Dalian) Refinery was heard to be ramping up run rates soon. The refinery has been running at around 85% capacity this week, and will lift the run rates of its two crude distillation units further from mid-May, according to a Chemical Industry source. Hengli signed a sales agreement with Sinopec under which Sinopec will be responsible for all the petrochemical sales, while oil product sales will also be handled by it, according to another source with the company. In downstream plant news, Taiwan’s Formosa Chemicals and Fibre Corp. shut its 1.2 million mt/year purified terephthalic acid unit at Ningbo on Wednesday for 15 days of maintenance, S&P Global reported earlier. The company has two other PTA plants in Taiwan — 600,000 mt/year at Long Der and 550,000 mt/year in Mailiao. Both lines are currently running at full capacity, a company source said. The Asian PTA Chemical Industry was assessed flat day on day at $830/mt CFR China Friday, while Asia PTA profit margin was calculated at $109/mt Friday, after deducting feedstock costs and assuming that 0.665 mt PX is needed to produce 1 mt of PTA, including operating costs at $120/mt.

RATIONALE:

Asian PX Chemical Industry prices were assessed down $2.08/mt from Wednesday at $902.67/mt CFR Taiwan/China and $883.67/mt FOB Korea Friday. The markers take an average of the H2 June, and H1 and H2 July laycans. The H2 June laycan was assessed at $906/mt (Chemical Industry), below an outstanding June offer from OTI at $907/mt. A June bid from Total Singapore at $910/mt was normalized due to a restriction in origin and vessel condition. The July laycans were assessed at $901/mt, above an outstanding Asian origin July bid from Mercuria at $888/mt, and below an outstanding July offer from Yisheng at $912/mt. The July laycans were also assessed at the last July trade level between Mercuria and Litasco, and at a $5/mt backwardation to the H2 June laycan, below an outstanding June/July time spread offer from Yisheng at $6/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

 

Asian Iso-MX (Imported Data): Rises $5-$6/mt in stable market

Imported Data

Imported Data of Asian Iso-MX

– CFR demand set to pick up in Q3

– Taiwan, China buyers likely to return

Asian isomer-grade mixed xylene prices rose day on the day by $6/mt at $690/mt FOB Korea, and up to $5/mt at $709/mt CFR Taiwan on Thursday. Traders and producers eye improved Imported Data conditions and downstream paraxylene seemed to have found support above $900/mt CFR Taiwan/China. Demand for isomer-MX may improve in the third quarter as spot buying from end-users in Taiwan and China is expected to increase, Imported Data sources said. In China, Sinopec is expected to import around 20,000 mt/month of isomer-MX after its Sinopec Hainan No. 2 PX plant comes into production. Demand may pick up from July-August, Market sources said. Taiwan’s Formosa Chemicals and Fibre Corp. may also return to the spot Market in July-August, sources said, following a hiatus due to the closure of its fire-hit No. 3 aromatics plant in Mailiao, Taiwan, since April 7. Meanwhile, July ICE Brent crude oil futures slipped 94 cents on the day to $70.03/barrel at 0830 GMT in Asian trade (Imported Data).

RATIONALE:

Asian isomer-MX was assessed up $6/mt day on the day at $690/mt FOB Korea and up to $5/mt at $709/mt CFR Taiwan on Thursday (Imported Data). The markers take the average of the third and fourth half-month laycans, currently the two June half-months. No bids or offers were registered during the Imported Data on Close assessment process. During the MOC process, a bid for June loading cargo was heard raised to $689/mt FOB Korea, without attracting any offers. The June laycans were assessed above the bid, at $690/mt FOB Korea. No bids or offers were heard on a CFR Taiwan basis, but the Imported Data was assessed up $5/mt tracking the FOB Korea marker, and supported by buying interest heard on a CFR China basis at $700-$705/mt for June arrivals. The above rationale applies to the following Market data codes: PHAUV00 for FOB Korea and PHAUT00 for CFR Taiwan (Imported Data).

 

Imported Data
Imported Data

Asian Styrene Chemical Industry: Rebounds $7/mt to $1,078/mt CFR China

Chemical Industry

Chemical Industry Asian Styrene

– More styrene supply expected

– SM margin falls, rising feedstock costs

Asian styrene monomer Chemical Industry prices rebounded $7/mt on the day to $1,077/mt CFR China and $1,037/mt FOB Korea Wednesday, tracking gains in the feedstocks and benchmark crude oil futures. The July ICE Brent crude oil futures increased $1.19/b on the day to $70.97/b Wednesday at 4:30 pm Singapore time (0830 GMT). Bids were heard at $1,060-$1,070/mt CFR Zhangjiagang/Jiangyin for May arrival cargoes and $1,065-$1,070/mt CFR Zhangjiagang/Jiangyin for June arrival cargoes, but it did not attract any selling interest. In the East China domestic Chemical Industry, the June marker rose Yuan 80/mt on the day to Yuan 8,310/mt ex-tank Wednesday. According to Chinese market sources, an increase in styrene supply is expected in the coming months after the completion of scheduled plant maintenances in Asia this month, and shipments in China will return to normal. A Chemical Industry source noted that more shipments are expected to arrive in the first half of May. “However, it might be too early to say if supply would be back to normal, there’s still some wait-and-see mentality,” a Chinese trader said. According to S&P Global data, styrene production margin fell $9.20/mt week-on-week to $144/mt on the back of rising feedstock costs. In the feedstock Chemical Industry, ethylene continued to strengthen Wednesday to $960/mt CFR Northeast Asia, up $10/mt day on day, driven by firm demand from the styrene monomer sector. Benzene rebounded $11/mt on the day to $620/mt FOB Korea Wednesday amid persistent demand from Taiwan for June-arrival material, as a second buy tender was seen from the country for June CFR Taiwan benzene (Chemical Industry).

RATIONALE:

Asian SM was assessed $7/mt up on the day at $1,077/mt CFR China and $1,037/mt FOB Korea Wednesday. The markers currently take the average of the H1 and H2 June laycans. There were no transparent bids or offers during the Chemical Industry on Close assessment process on Wednesday. H1 and H2 June were assessed at $1,077/mt, above a bid last seen at $1,070/mt CFR Zhangjiagang/Jiangyin, and tracking the gains in East China domestic market in the afternoon. In the East China domestic Chemical Industry, the June marker was assessed up Yuan 80/mt on the day at Yuan 8,310/mt ex-tank, equating to $1,066.32/mt on an import parity basis. The FOB Korea marker was assessed at $1,037/mt, based on the pegged $40/mt spread to CFR China, while the CFR Taiwan marker was assessed at $1,067/mt, based on the pegged $10/mt spread to CFR China Chemical Industry.

 

Chemical Industry
Chemical Industry

Asia and Middle East Naphtha Chemical Industry Commentary

Chemical Industry

Stronger demand for heavy full range naphtha, as opposed to paraffinic naphtha, encouraged suppliers in the Asian naphtha Chemical Industry to focus on spot offers of the higher density grade. Thailand’s PTT International Trading, is offering 5,000 mt of light naphtha with minimum 80% paraffin content and maximum 400 ppm sulfur content, loading May 30 to June 1 in a tender closing May 7 at 0300 GMT, with same-day validity. Indian Oil Corp., has kicked off offering June-loading supplies in the country, with a 35,000 mt heavy full-range naphtha spot cargo that is loading from Chennai on June 1-6, via a tender closing May 8, with same day validity. A CFR Japan Chemical Industry naphtha physical crack stood at $45.90/mt against ICE Brent crude futures at Wednesday’s Asian close, and was notionally pegged higher at $48.025/mt at 0300 GMT Wednesday. Buyers of heavy full range naphtha were attracted by the weak naphtha cracking margins. Additionally, demand for paraffinic naphtha was hampered by LPG’s growing discount to naphtha prices. FEI propane swap sank to minus $121.5/mt last Wednesday, before edging slightly higher to minus $117/mt at Wednesday’s Asian close. Barring that, activity in the Asian naphtha Chemical Industry has been subdued. Elsewhere, the Hengyi refinery in Pulau Muara Besar, Brunei, received its first crude shipment late last week, signaling that production of petrochemicals is moving closer. The crude was likely light sweet Nigerian origin, an analyst said. Hengyi Industries reported the shipment on its website on Sunday. The first phase of the project, which has a crude processing capacity of 8 million mt/year, producing 1.5 million mt/year of paraxylene and 500,000 mt/year of benzene (Chemical Industry), as well as gasoline, kerosene, diesel and other products. Once production starts, the plant will sell petrochemicals such as paraxylene to Hengyi’s domestic downstream enterprises, while benzene would likely be sold in the Southeast Asian and North Asian regions. China’s Hengyi Petrochemical owns 70% of Hengyi Industries, while the Brunei government owns 30% through Damai Holdings.

NWE Xylenes – Week starts off in stable manner

Chemical Industry

– MX, PX still long

– OX stable after recent drops

European xylenes Markets started the week in a stable manner on Wednesday, with traders still wondering when activity would pick up. The backdrop to the mixed xylenes and paraxylene Markets was still of length in the Market and low demand. For PX, this was on a global scale. Despite this, trading in Asia was rangebound, and little movement was seen on spot pricing. Europe followed suit, though limited spot activity was heard, with buyers’ storage tanks still heard to be nearly full. Spot PX was unchanged from Wednesday at $793.50/mt. At the end of last week, spot PX pricing fell below the cost of feedstock MX for the first time since June 2012. In the MX Market, activity was thin, with buying interest heard in the low $100s/mt premiums to Eurobob gasoline. Offer levels were still not heard to be lowering, with Med cargoes heard offered at around $130/mt FOB Med. One Northwest European producer said that “there is no length in the Market.” However, traders have indicated little interest on the buy side and there is a lack of European exports due to high pricing compared to other regions. In April, only five MX exports were recorded out of Europe, according to Panjiva data. This was a 72% decrease from April last year. MX premiums to Eurobob gasoline were stable from Wednesday at $107/mt CIF ARA May and $100/mt CIF ARA June. European orthoxylene spot pricing was stable at $1,060/mt FOB ARA, following sharp drops seen at the end of last week. European buyers were unwilling to pay the high prices seen for some recent Korean and US imports, according to sources. As a result, some traders may be stuck with loss-making cargoes. RATIONALE: S&P Global assessed M1 May mixed xylene CIF ARA premium to Eurobob gasoline stable from Wednesday at $107/mt, in line with an indication by a trader. The M2 June premium was stable at $100/mt, in line with an indication by a trader. Offer indications were heard at $130/mt on a FOB Med basis. May Northwest European paraxylene was stable at $793.50/mt FOB ARA, amid no disproving indications. June was stable at $793.50/mt FOB ARA, maintaining parity with May. The paraxylene 5-30 day forward spot price was assessed as the average of the period at $793.50/mt FOB ARA, stable. Orthoxylene was assessed flat at $1,060/mt FOB ARA, amid no disproving indications.

 

Asian Benzene Chemical Industry – FOB Korea down $11.67/mt on week

Chemical Industry

Chemical Industry news of Asian Benzene

– Sentiment mixed on East China prices after holiday

– Support seen from firm global May CP settlements

Asia benzene discussions were lower on the week, with FOB Korea down $11.67/mt from last Monday at $619.33/mt. Activity in the Chemical Industry was limited on the back of national holidays in countries in North Asia and Southeast Asia. While bearishness in the market came on the back of a $3.26/b fall in upstream July ICE Brent crude oil futures, some firm sentiment was seen from strong global benzene contract price settlements for May. The May US Contract Price was up 8 cents/gal on the month, at 233 cents/gal, or $696.67/mt. The Weekly Mean of FOB Korea and Daily mean of FOB Korea for April-loading FOB Korea material stood at $627.72/mt and $626.41/mt, respectively. This brings the price spread between April-loading FOB Korea and May-arrival US CP at approximately $68.95/mt, with the arbitrage wide open and sufficient to cover freight costs between South Korea and the US. The shift in material from Korea to the US Chemical Industry was reflected in April exports data, with South Korea having exported 78,247 mt of benzene to the US, which makes up 31% of total exports from South Korea. The May EU Contract Price stood $40/mt higher on the month at $758/mt. Demand from the EU was fulfilled by Southeast Asian, Indian, and Middle-Eastern material, which is typically priced at a discount to the FOB Korea benchmark, likewise resulting in an open arbitrage between Asia and the EU, sources said. A trader said that spot material in Asia was mostly intended for West-bound shipment this week, owing to Labor Day holidays in China. The Chinese Chemical Industry will reopen on May 5. Furthermore, the nonoperational status of major styrene monomer producers in South Korea and Singapore continued to weigh on the minds of suppliers of Asian benzene, amid concerns that demand for prompt material from Asia could be limited amid the shutdowns. Expectations were mixed on the possible direction of East China prices after Chemical Industry open. East China prices were heard last at Yuan 4,440/mt ($571.52/mt), Yuan 4,490/mt ($578.95/mt), and Yuan 4,530/mt ($584.11/mt) for prompt, end-May and June material, respectively. Sentiment could continue to be bearish amid safety checks at plants in China and growing supply from Hengli Petrochemical.

RATIONALE:

FOB Korea benzene (Chemical Industry) was assessed down $4/mt on the day at $619.33/mt Monday. The marker takes the average of the third, fourth and fifth half-month laycans, H1 June, H2 June, and H2 July. During the  Chemical Industry on Close assessment process Monday, no fully transparent bids or offers were seen. The H1 June and H2 June laycans were assessed at $618/mt FOB Korea, between a bid and an offer last seen at $617/mt and $619/mt FOB Korea Chemical Industry, respectively. The H1 July laycan was assessed at $622/mt FOB Korea, below an offer last seen at $623/mt FOB Korea, assessing the June/July spread at the last traded level of minus $4/mt FOB Korea. The CFR China marker was assessed down $4/mt on the day at $621/mt, tracking changes in FOB Korea amid holidays in China Chemical Industry. The East China marker was assessed unchanged on the day at Yuan 4,487/mt, or $578.52/mt on an import-parity basis.

 

Chemical Industry
Chemical Industry

China Flexible Packaging Group plans to shut down two polypropylene plants

China Flexible Packaging Group to shut two PP plants May 6: source

China Flexible Packaging Group plans to shut down two polypropylene plants, with a capacity of 500,000 mt/year each in Jiangyin, Fujian province by May 6, a day earlier than initially planned, a company source said Friday. One plant will be shut down for three weeks, while the other will be shut for two weeks. During the shutdown of the two PP plants, the company said it would also reduce its purchasing of feedstock propylene, S&P Global reported earlier. The company buys 60,000 mt imported propylene and 20,000 mt of domestic materials each month as feedstock for its PP plants. It will buy less than 30,000 mt propylene for May due to the turnaround. China’s Fujian Meide Petrochemical, a wholly owned subsidiary of China Flexible Packing Group, plans to delay the start-up of its newly built propane dehydrogenation plant in Jiangyin, Fujian province, to August, two months later than planned. The PDH plant has the capacity to produce 660,000 mt/ year of propylene and uses 795,000 mt/year of propane as feedstock when operating at 100% of capacity.

S Korea’s Hanwha Total may extend cracker maintenance due to strike

South Korea’s Hanwha Total may extend its Daesan cracker turnaround by one more week due to an ongoing labor strike, a company source said Friday. The company had initially planned to shut the cracker for turnaround on March 27 and restart on May 8. In mid-April, it delayed the restart to May 11, S&P Global reported previously. The source said that it is now targeting to restart the cracker by May 18, although the situation is uncertain. “It may also start earlier (than May 18) if the strike is resolved,” the source said. A downstream buyer also confirmed that the company had told them the restart date had been delayed to May 18. In the butadiene market, South Korean buyers were heard to have bought some May-arrival spot cargoes because of the unexpected delay. The cracker has the capacity to produce over 1 million mt/year of ethylene, 700,000 mt/year of propylene and 130,000mt/year of butadiene.

S Korea’s YNCC to shut Yeosu butadiene unit from May 18-June 20

South Korea’s Yeochun NCC will shut its butadiene unit at Yeosu from May 18-June 20 for maintenance, a company source confirmed Friday. Maintenance at its 240,000mt/year butadiene unit also coincides with the planned shutdown at its No. 1 steam cracker. The company will shut its No. 1 cracker from May 20-June 24, S&P Global reported earlier. YNCC has three steam crackers at Yeosu. The No.1 unit can produce 860,000 mt/year of ethylene and 485,000 mt/ year of propylene, No.2 can produce 580,000 mt/year of ethylene and 270,000 mt/year of propylene and No. 3 can produce 470,000 mt/year of ethylene and 230,000 mt/year of propylene.

Thai PTT Asahi Chemical to shut ACN plant for maintenance from May 9 Thailand’s PTT Asahi Chemical plans to shut its 200,000 mt/year acrylonitrile plant at Map Ta Phut from May 9 for around 35 days of maintenance, a company source said Friday. “We will shut down our plant for turnaround by May 9 for a turnaround that lasts 35 days,” the source said. The company had earlier planned to shut down the plant by May 9 for 41 days of turnaround, S&P Global reported previously. PTT Asahi Chemical is a joint venture owned by Thailand’s PTT and Japan’s Asahi Kasei Chemicals and Marubeni.

S Korea’s YNCC to shut No.1 steam cracker from May 20-June 24

South Korea’s Yeochun NCC plans to shut its No.1 steam cracker from May 20 until June 24 for maintenance, a company source said Friday. “We will shut down our No.1 cracker from May 20 to June 24,” the company source said. YNCC also plans to shut its olefins conversion unit, or OCU, in Yeosu during the same period for maintenance, the source said. The OCU is able to produce 140,000 mt/year of propylene. YNCC has three steam crackers at Yeosu. The No.1 unit can produce 860,000 mt/year of ethylene and 485,000 mt/year of propylene, No.2 can produce 580,000 mt/year of ethylene and 270,000 mt/year of propylene and No. 3 can produce 470,000 mt/year of ethylene and 230,000 mt/year of propylene.

China’s Jiangsu Sailboat to restart butadiene unit in May

China’s Jiangsu Sailboat Petrochemical will restart its 100,000 mt/year butadiene unit in May after a turnaround that began in early April, a company source said Friday. The exact date has not yet been decided, as the company will monitor the performance of the butadiene market, the source said. The butadiene market has been on a downtrend since January this year, with the domestic spot price falling 33.4% from its January peak to Yuan 7,750/mt ex-tank East China Friday, according to S&P Global assessments. The decline was largely due to oversupply and weak downstream demand. The methanol-to-olefin plant has a nameplate capacity of 315,000 mt/ year of ethylene, 385,000 mt/year of propylene. The company will be expanding its butadiene unit capacity to 180,000 mt/year in 2022, the source said.

 

Chemical Industry
Chemical Industry

Styrene Chemical Industry

Chemical Industry

Crude, benzene and ethylene fall on the week „„

Japan’s SM exports 51,024 mt March, up 12.6% MOM

Asian styrene monomer increased $10/mt on the week to $1,078/mt CFR China and $1,038/mt FOB Korea Friday amid muted trading throughout the week due to the Labour Day holiday. Day-on-day, prices were stable from Friday. Upstream markets, however, posted weekon- week losses, where the July ICE Brent crude futures were down $4.02/b to $70.19/b Friday, benzene FOB Korea tumbled $11.67/mt to $619.33/mt and ethylene CFR Fareast Asia fell $20/mt to a three month low of $930/mt Friday. Sentiments in the downstream markets were not any better, where market participants have turned to become more pessimistic, sources said earlier. Trading was slow amid a lack of buying interest with minimal pre-holiday restocking. Sources further noted that while activity would improve next week, high inventory is still an issue given the slower-than-expected drawdown so far. Styrene inventory in East China declined 10,200 mt week on week to 197,800 mt, according to market sources. Consumption exceeded arrivals at 20,200 mt and 10,000 mt, respectively. In statistics news, Japan’s styrene monomer exports in March showed an increase of 12.6% on the month to 51,024 mt, according to the latest data from Japan Customs Department. Year-on-year, however, imports have declined 2.3%. Weekly styrene was assessed up $10/mt week on week at $1,069/mt CFR Southeast Asia and $1,072/mt CFR India Friday.

Rational

Asian SM was assessed flat day on day at $1,078/mt CFR China and $1,038/mt FOB Korea Friday. The markers currently take the average of the H1 and H2 June laycans. There were no transparent bids or offers during the Market on Close assessment process on Friday. H1 and H2 June were assessed at the pegged level of $1,078/ mt. In the east China domestic market, the June marker was assessed flat day on day at Yuan 8,290/mt ex-tank, equating to $1,068.93/mt on an import parity basis. The FOB Korea marker was assessed at $1,038/ mt, based on the pegged $40/mt spread to CFR China, while the CFR Taiwan marker was assessed at $1,068/mt, based on the pegged $10/ mt spread to CFR China.

 

Asian EDC/VCM Chemical Industry: EDC falls $25/mt, VCM stable to $20/mt higher

– EDC hits 9-month low despite stable US Chemical Industry

– VCM rebounds in line with rising PVC

EDC Chemical Industry: Asian ethylene dichloride fell $25/mt week on week to a nine-month low Friday. EDC prices in the US, the main supplier to Asia, remained stable, with the FOB USG price assessed unchanged on the week at $360/mt Friday, S&P Global  data showed. Despite this, EDC supply in Asia was seen to be heavy as spot cargoes were also coming in from the Middle East and other parts of Asia. In related Chemical Industrys, the FOB Northeast Asia caustic soda price was assessed stable week on week at $340/mt Friday,  data showed. In statistics news, Thailand’s EDC imports spiked 111.4% from a month earlier to 63,867 mt in March, and were up 100% year on year, latest customs data showed.

VCM Chemical Industry: Asian vinyl chloride monomer was assessed stable to $20/mt higher this week on the back of a firm downstream PVC Chemical Industry. The CFR China PVC price was stable week on week at $840/mt, up from the lowest level seen since July 2016 that was hit a few weeks earlier,  data showed. The price spread between PVC and VCM was calculated at $160/mt Friday, down $20/mt from a week earlier but still higher than a typical breakeven spread of $150/mt. In statistics news, Thailand’s VCM exports rose 56.8% month on month to 9,421 mt in March, the latest customs data showed.

RATIONALE:

EDC Chemical Industry: Assessed down $25/mt week on week at $345/mt CFR Far East Asia and $375/mt CFR Southeast Asia Friday. On a CFR FE Asia basis, a buying idea was heard below $300/mt, against a selling idea at $350/mt. The CFR SE Asia price fell in line with the FE Asia Chemical Industry.

VCM Chemical Industry: Assessed up the $20/mt week on week at $680/mt CFR Far East Asia Friday after a tradable level was heard in the high $600s/mt CFR FE Asia. The CFR Southeast Asia price was assessed unchanged over the same period at $700/mt, with the SE Asia-FE Asia spread heard at $20-$30/mt.

 

Chemical Industry
Chemical Industry

Asian MTBE Chemical Industry: Falls $14/mt on weaker 92 RON

Chemical Industry

Chemical Industry news of Asian MTBE

– 92 RON Cracks fall 80 cents/b at $6.69/b

– Refinery restarts, capacity additions put pressure

Asian MTBE Chemical Industry was assessed down $14/mt day on the day at $721/mt FOB Singapore Thursday, under pressure from active selling interest as well as a weaker 92 RON gasoline crack against ICE Brent futures. Front-month ICE Brent futures were up 58 cents/b day on the day at $72.23/b as of 4:30 pm Singapore time. Meanwhile, the 92 RON crack was down 80 cents/b day on the day at $6.69/b on Thursday, making MTBE blending into the gasoline pool uneconomical. Impending restarts from maintenance at several refineries across Asia, as well as new capacity additions in China, are expected to weigh on the MTBE Chemical Industry, sources said. South Korea’s S-Oil plans to restart its 600,000 mt/year of MTBE unit at Onsan in early May, a market source close to the company said last Thursday. China’s Hengli Petrochemical plans to begin commercial operations at its new 600,000 mt/year MTBE plant at Dalian, Liaoning province in early May, a company source said last week. Nevertheless, some Chemical Industry participants noted that summer driving season and discontinued Iranian sanction waivers would support the crude and gasoline Chemical Industry, which will continue to bolster MTBE prices.

RATIONALE:

Asian MTBE Chemical Industry was assessed down $14/mt day on the day at $721/mt FOB Singapore Thursday, due to lower offers registered during the S&P Global Chemical Industry on Close assessment process. During the  MOC process for MTBE, PetroChina registered an offer for loading over May 21-25 initially at $740/mt FOB Singapore before lowering it to $723/mt. Another offer from the company for loading over June 2-6 was lowered to $718/mt FOB Singapore Chemical Industry from the initial level at $740/mt. Given the offers, H2 May was assessed at $722/mt and H1 June at $717/mt. As a result of the marker, which takes an average of the 15-40 day laycans, currently, May 15-June 9, was assessed at $721/mt. The MTBE factor was assessed at 1.081.

 

Chemical Industry
Chemical Industry