Oxo-alcohols Price in India

Asian Iso-MX Chemical Industry: Stays stable to higher as demand emerges

Chemical Industry

Chemical Industry Asian iso-MX

– CFR Taiwan bid sees no offers

– Crude dips

Asian isomer-grade mixed xylene Chemical Industry was assessed unchanged at $690/mt FOB Korea and up $7/mt at $716/mt CFR Taiwan on Friday, as buying interest appeared despite a slide in upstream prices. A bid for a second-half June cargo was raised to $715/mt CFR Taiwan, but there was no selling interest seen. Meanwhile, July ICE Brent crude oil futures dipped 26 cents on day to $69.77/b at 0830 GMT in Asian trade. Naphtha, however, inched up $1.13/mt to $563.38/mt CFR Japan, showing mixed directions in the upstream Chemical Industrys. The East China MX inventory was stable this week at around 110,000 mt, similar to the week before, market sources said. In the East China domestic Chemical Industry, the prompt price was heard at Yuan 5,520-5,540/mt or about $696.20/mt on an import parity basis.

RATIONALE:

Asian isomer-MX Chemical Industry was assessed unchanged day on the day at $690/mt FOB Korea and up $7/mt at $716/mt CFR Taiwan on Friday. 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 S&P Global Chemical Industry on Close assessment process. During the MOC process, a bid for an H2 June loading cargo was raised to $715/mt CFR Taiwan, without attracting any offers. The June laycans were assessed above the bid, at $716/mt CFR Taiwan. No bids or offers were heard on an FOB Korea basis, and the marker was assessed unchanged, considering lower crude oil and freight costs to Taiwan, last assessed at $27/mt for 2,000-3,000 mt cargoes. The above rationale applies to the following Chemical Industry data codes: PHAUV00 for FOB Korea and PHAUT00 for CFR Taiwan.

Chemical Industry
Chemical Industry

Asian Iso-MX: Dips $1-$3/mt on week amid market volatility

Chemical Industry

– PX inches up after Monday tumble

– FOB Korea falls $15/mt day on day

Asian isomer-grade mixed xylene was assessed down $3/mt week on week at $723/mt FOB Korea and by $1/mt at $737/mt CFR Taiwan Monday, amid volatility in both upstream and downstream markets during the week. June ICE Brent crude oil rose above $75/b earlier in the week but had dropped to $74.21/b at 0830 GMT in Asian close Monday, down $1.07/b day on day. The FOB Korea isomer-MX marker was assessed down $15/mt day on day, as offers appeared, and following a sharp tumble in paraxylene the previous day. However, PX had inched up $3.17/mt day on day to $951/mt CFR Taiwan/China on Monday. Over the week, the spread between PX and MX narrowed by $11.67/mt to $228/mt on Monday. The spread hit a low of $209.83/mt on Monday, the lowest since July 30, 2018, when it was at $202.83/mt, S&P Global data showed. Asian PX continued to weaken as supply increased due to the start of Hengli Refining and Petrochemical’s new 2.25 million mt/year PX plant in Dalian in late March. Meanwhile, in China-related news, the East China isomer-MX inventory level decreased about 15% week on week to close to 110,000 mt this week, market sources said. The prompt East China isomer-MX price was heard at Yuan 5,680-5,700/mt on Monday or about $720.60/mt on an import parity basis. Ex-tank cargoes for early May were heard negotiated at Yuan 5,710-5,730/mt, or about $724.40/mt.

RATIONALE:

Asian isomer-MX was assessed down $15/mt and $5/mt day on the day at $723/mt FOB Korea and $737/mt CFR Taiwan, respectively, Monday. The markers take the average of the third and fourth half-month laycans, currently second-half May and H1 June. No bids or offers were registered during the  Market on Close assessment process. During the  MOC, an offer for a second-half May FOB Korea cargo was heard lowered to $725/mt but did not attract any bids. The H2 May laycan was assessed at $723/mt FOB Korea, below the offer. H1 June was assessed at par with H2 May at $723/mt FOB Korea, keeping the structure unchanged day on day. No bids or offers were heard on a CFR Taiwan basis, but the marker was assessed lower by $5/mt to $737/mt. The above rationale applies to the following market data codes: PHAUV00 for FOB Korea and PHAUT00 for CFR Taiwan.

 

Chemical Industry

NWE Benzene – Availability remains tight at prompt

Chemical Industry

– Turnaround uncertainty driving buying

– Imports seen capping market

The price of benzene loading 5-30 days forward was assessed $1/mt lower Friday at $765.50/mt, due to backwardation as the month rolled forward. Prices have pushed higher this week as the upstream energy market rallied over the Easter weekend. Higher pricing has been seen in the prompt due to tighter availability. Upstream, cracker turnarounds and maintenance works have begun to affect benzene run rates in Europe. Styrene production rates may have also been affected, as sellers have been seen sitting on supplies ahead of their respective turnarounds. This has been triggered by a declaration of force majeure across a slate of products at Shell’s Moerdijk production facility and its Pernis facility. The prompt premium is capped for the second half of May, a trader said. The timescale still allowed for US imports, he said, and material would also be incoming from India.

RATIONALE:

S&P Global assessed benzene for delivery 5-30 days forward at $765.50/mt CIF ARA Friday, down $1/mt from Friday due to market backwardation as delivery dates rolled forward. May was assessed at $763.50/mt with no disproving indications. June was assessed stable at $714/mt with no disproving indications. July was assessed at $709/mt, stable amid no disproving indications. August was assessed flat to July. September was assessed flat to August. FOB was assessed at $765.50/mt, flat to CIF.

Styrene Imported Data

Chemical Industry

Flat on day amid rangebound discussions

SM inventory drops 3,100 mt at 229,600 mt

Asian styrene monomer was $19/mt lower on the week at $1,071/mt CFR China and $1,031/mt FOB Korea Friday on the bearish sentiment despite stronger upstream crude (Imported data). Day on day, styrene was assessed flat amid rangebound discussions. Prices were initially lower earlier in the day before recovering to end the day stable. In the CFR China Imported Data, a bid was heard at $1,065/mt for June-arrival cargoes but it did not attract any selling interest. In the east China domestic market, the prompt marker was assessed at Yuan 8,200/mt ex-tank Friday, Yuan 10/mt higher day on day. At 4:30 pm Singapore time (0830 GMT), ICE June Brent futures were up $2.29/b (3.316%) on the week at $71.35/b Friday. Imported Data has been rather “directionless” Friday amid weak buying interests, a market  participant said. According to sources, styrene inventory in east China fell 3,100 mt on the week at 229,600 mt, where consumption of 23,100 mt outstripped arrivals of 20,000 mt. Despite the recent continuing drawdown in styrene inventory, it hasn’t been a supporting factor to prices and sentiments given that the current level remains much higher than historical  Imported data,  Market sources said. Styrene inventory in east China is 154,500 mt higher as compared to the same period last year. Market  participants further noted that the earlier news of China’s Changzhou New Solar Chemical shutting its 300,000 mt/year styrene monomer plant in Changzhou, Jiangsu for 20-25 days of unplanned maintenance from April 15 might have some short-term influence on styrene when the plant starts maintenance coming Friday. The CFR India and Southeast Asia markers were assessed down $19/mt on the week at $1,064/mt and $1,061/mt Friday, respectively.

Rationale

Asian SM was assessed stable on the day at $1,071/mt CFR China and $1,031/mt FOB Korea Imported data Friday. The markers currently take the average of the H1 May and H2 May laycans. There were no transparent bids or offers during the Platts market on Close assessment process on Friday. H1 and H2 Jun were assessed at $1,071/mt CFR China Imported data, above the best bid heard at $1,065/mt with no offer heard. Maintaining the pegged flat May/Jun spread, H1 and H2 May were assessed at $1,071/ mt, also tracking firmer sentiments in the east China domestic market in the afternoon. In the east China domestic Chemical Industry, the prompt marker was assessed up Yuan 10/mt on the day at Yuan 8,200/mt ex-tank, equating to $1,058.37/mt on an import parity basis. The FOB Korea marker was assessed at $1,031/mt, based on the pegged $40/ mt spread to CFR China, while the CFR Taiwan marker was assessed at $1,059/mt, based on the pegged $12/mt spread to CFR China Imported data.

Imported Data
Imported Data

Chemical Industry Isomer – MX

Chemical Industry

China MX inventory builds again

FCFC No. 3 PX plant remains shut

Asian isomer-grade mixed xylene rose $8/mt and $5/mt week on week to be assessed at $723/mt FOB Korea and $738/mt CFR Taiwan, respectively, Friday, amid rising prices in several aromatics Chemical Industry as well as naphtha. Day on day, the FOB Korea marker rose $4/mt and CFR Taiwan increased $2/mt. Feedstock naphtha was up $24.50/mt week on week to be assessed at $581.87/mt CFR Japan Friday. Also, toluene rose by $16/mt week on week to be assessed at $703/mt FOB Korea. Asian paraxylene prices were assessed up $3.67/mt day on day at $1,068/mt CFR Taiwan/China and $1,049/mt FOB Korea Friday. PX prices were rising this week following an explosion and subsequent fire at Taiwan’s Formosa Chemicals and Fibre Corp.’s No. 3 aromatics plant at Mailiao on April 7. The company is not likely to sell isomer-MX in the spot Chemical Industry despite the shutdown of its No. 3 plant, sources close to the matter said. The No. 3 plant can produce 900,000 mt/year of PX, 640,000 mt/year of benzene and 240,000 mt/year of orthoxylene. Isomer-MX is the feedstock for PX and OX and FCFC is a major buyer, buying close to 900,000 mt/year, sources estimate. A trade source said MX cargoes for arrival in Taiwan in first-half May were being delayed to second-half May as participants expected the shutdown of the aromatics plant and No. 3 reformer to last one-two months. This could not be confirmed with FCFC. In other news, Taiwan’s CPC awarded three 5,000-mt cargoes of isomer-MX for May loading via tender this week, sources said. One cargo was awarded to a Chinabased trading company and two to a Western trading company, they said. The price was at parity or a single-digit discount to the average of Platts FOB Korea assessments. Meanwhile, the inventory level of MX in East China Chemical Industry jumped week on week by 40% to around 126,000 mt, comprising of mainly isomer-grade MX.

Rationale

Isomer-MX was assessed up $4/mt day on day at $723/mt FOB Korea and up $2/mt at $738/mt CFR Taiwan Friday. The markers take the average of the third and fourth half-month laycans, currently first-half May and second-half May. No bids or offers were registered during the S&P Global Platts Chemical Industry on Close assessment process. During the Platts MOC process, a bid for a May-loading cargo was raised to $722/mt FOB Korea, against no offers. The May laycans were assessed above the bid at $723/mt FOB Korea. The CFR Taiwan marker was assessed higher by $2/mt tracking the FOB Korea price rise. The above rationale applies to the following Chemical Industry data codes: PHAUV00 for FOB Korea and PHAUT00 for CFR Taiwan.

Chemical Industry
Chemical Industry

NWE Styrene – Spot prices fall tracking fall in Asia

Chemical Industry

– May traded at $1,085/mt

– Stricter safety checks in China

European styrene spot prices fell Friday tracking the fall in Asian prices. S&P Global  assessed styrene for loading 5-30 days forward at $1,086/mt FOB ARA Friday, down $14 on the day. A 1,000 mt trade was reported for May at $1,085/mt in the morning trading session. Following the early trade buyers and sellers were far apart with bids at $1,070/mt and offers at $1,090/mt for prompt and forward months. In Asia, styrene extended its losses, sliding $16 on the day to $1,071/mt CFR China and $1,031/mt FOB Korea Friday on bearish sentiment after the latest inventory data showed an increase in stockpiles. The market continues to keep a close eye on the impact of the stricter safety checks in China. A market source said prices were likely to hover around current levels unless there was a significant increase in buying which might reduce inventory. Downstream, following extensive buying earlier this year, demand has slowed in April following the rise in styrene monomer. The rise in the styrene contract price by Eur97.50 to Eur1,152.50/mt caused buyers to buy in line with their needs, market sources said.

RATIONALE:

S&P Global  assessed styrene for loading 5-30 days forward at $1,086/mt FOB ARA Friday, down $14 on the day. April was assessed at $1,087/mt, down $14 on the day, based on a stable $2 backwardation to May and within the bid offer range of $1,070-$1,090/mt. May was assessed at $1,085/mt, down $14 on the day, within the bid offer range of $1,070-$1,090/mt and in line with an earlier trade at $1,085/mt.

 

growth-3
growth-3

NWE Toluene – Chemical premium values weak with no spot demand

Imported Data

– Premiums down $2/mt

– US gasoline demand could reduce market length

European toluene premiums twitched downwards on Thursday due to lackluster demand from the chemical sector and talk of lower premiums attracting business from gasoline blenders. The April and May premiums were down $2/mt on Thursday to $115/mt over Eurobob gasoline swaps. Sources pegged toluene petrochemical value in a wide range of $100-$130/mt, compared to blend value in the gasoline market at $50-$80/mt. “There’s no real chemical number for toluene in the spot market right now as everyone is covered by contract,” a trader said. Sellers were however very resistant to drop premiums to the chemical market based on blend value, he said. Arbitrage to the US remained closed, keeping levels of availability high in Europe. The gasoline market could lead some reduction in stocks however, as a strong gasoline market has been led by demand from the US this week. With MTBE banned as a blendstock in the US, demand for gasoline for that market would require alternative high-octane components such as toluene.

RATIONALE:

S&P Global  assessed the CIF ARA toluene premium over Eurobob gasoline at $115/mt for April on Thursday, down $2/mt from Tuesday amid weak chemical demand. The chemical value for toluene was heard in a range of $100-$130/mt, but demand was said to be driven by blend value. This was heard in a range of $50-$80/mt. The May premium was assessed at $115/mt, flat to April.

business graph with arrow showing profits and gains on black background, wallpaper

Asian Benzene (Chemical Industry) – Prices fall as buying interest wanes

Chemical Industry

– FOB Korea down $5.67/mt, CFR China down $4/mt

– Sinopec raises domestic benzene price by Yuan 100

FOB Korea Chemical Industry  prices were down Wednesday for the first time since March 28, with firm pricing in the US having supported demand for FOB Korea material, as traders were keen to work the South Korea-US arbitrage. While availability of supply was limited Wednesday, offers emerged Wednesday amid the downtrend in prices. June FOB USG prices stood at 229 cents/gal Wednesday, $684.71/mt, and the price spread between the US and FOB Korea prices stood at $47.71/mt Wednesday. The price spread is down $6.83/mt on the week, and down $17.54/mt from two weeks ago, signaling a narrowing arbitrage opportunity for traders in the Chemical Industry. Over in the CFR China market, East China market participants were heard not keen to procure material above $600/mt CFR China, while firmer bids were seen from international traders. Domestic prices provided little support to CFR China, with May East China material assessed at Yuan 4,530/mt, or $585.36/mt on an import parity basis, resulting in a price gap of $34.64/mt between domestic and import material. China Petroleum & Chemical Corporation, or Sinopec, a major Chinese benzene producer increased its domestic ex-tank price by Yuan 100/mt, a company source said Wednesday. The listed price for domestic East China benzene was revised to Yuan 4,350/mt from Yuan 4,250/mt. The new listed price equates to approximately $562.10/mt on an import parity basis, based on an exchange rate of 6.7055. In other news, Chemical Industry participants continued to mull the effect of the explosion and subsequent fire at Taiwan’s Formosa Chemicals and Fibre Corp.’s No. 3 aromatics plant at Mailiao on Sunday. The No. 3 plant has the capacity to produce 640,000 mt/year of benzene, which feeds into multiple downstream units producing phenol and styrene. While both downstream plants are scheduled for maintenance in Q2, buying interest from Taiwanese end-users was heard, with queries for material for May and June delivery. While some Chemical Industry sources said that the plant could be shut for one-two months, others said that this was not confirmed. While the reason for the fire and explosion is under investigation, a Chemical Industry source said that no known damage to the unit was heard.

RATIONALE:

FOB Korea benzene was assessed down $5.67/mt on the day at $631.33/mt Wednesday. The marker takes the average of the third, fourth and fifth half-month laycans, H1 May, H2 May and H1 June. During the Wednesday Chemical Industry on Close assessment process Wednesday, no transparent bids or offers were seen. The H1 and H2 May laycans were assessed at $632/mt FOB Korea, below an offer last seen at $633/mt FOB Korea. The H1 June laycan was assessed at $630/mt FOB Korea, between a bid and offer last seen at $627/mt and $633/mt FOB Korea, respectively. June was also assessed at a backwardation of $2/mt to the May laycans, below a May/June offer last seen at plus $3/mt. The CFR China Chemical Industry was assessed at $620/mt Wednesday, down $4/mt on the day, tracking falls in FOB Korea and in the East China Chemical Industry. Buy ideas were last heard at $600/mt CFR China. The East China marker was assessed down Yuan 43/mt on the day at Yuan 4,497/mt, or $581.06/mt on an import parity basis.

Chemical Industry
Chemical Industry

 

Asian Toluene: Rises $1/mt on thin trading

Mathanol Prices

– Market continues to watch impact of VAT on trade

– East China domestic prices higher on the day

Asian toluene was assessed up $1/mt day on day at $676/mt FOB Korea and $702/mt CFR China on Thursday on thin trading. Earlier during the day, an offer for a 2,000-mt second-half April was seen at $725/mt CFR China, while buying indications for 2,000-mt cargoes for any May were heard at $695-$700/mt CFR China. In the domestic East China market, prompt cargoes on an ex-tank basis were heard discussed at Yuan 5,400-5,420/mt early in the day and stayed around the same level throughout the day as Chinese market participants continued to watch the impact the new value-added tax rate — which came into effect April 1 — would have on imports. Under the new rate, petrochemical products like toluene, would have a VAT of 13% — down from 16% earlier. The domestic East China marker was assessed at Yuan 5,410/mt, which equates to an import parity value of around $685/mt, up Yuan 50/mt from the day before. In related market news, nitration grade toluene in the US continues to skyrocket, with front-month nitration grade toluene assessed at 267 cents/gallons. Many in Asia are keeping an eye on arbitrage opportunities. Some FOB Taiwan cargoes were heard bound for the US and more trades are expected to be concluded should prices continue to rise in the US, sources said.

RATIONALE:

The FOB Korea marker was assessed at $676/mt Thursday, up $1/mt from the previous assessment. The CFR China marker was assessed at $702/mt Thursday, also up $1/mt from Thursday, amid thin trades. The FOB Korea and CFR China markers take the average of the third and fourth half-month laycans, currently H1 and H2 May. H1 May was assessed at $702/mt CFR China and H2 May at $702/mt CFR China on Thursday, maintaining the market structure day on day, and tracking the domestic Chinese market.

 

Asian Toluene: Climbs $3-$6.50/mt on bid during MOC

Mathanol Prices

– Domestic Chinese prices heard higher on the day

– Market expects bullish toluene

 

Asian toluene rose $3-$6.50/mt Tuesday to be assessed at $701/mt CFR China and $675/mt FOB Korea, respectively, on the back of a best bid heard at $674/mt FOB Korea during the  Market on Close assessment process Tuesday. During the MOC process, a 2,000-mt any May bid was heard at $660/mt FOB Korea, which was subsequently raised to $674/mt FOB Korea but no interest was heard generated. “So today is the 13% VAT [kicking in] for all manufacturing industry, but not many people are indicating their buying interest yet as this is just the first day of the week and the month as well. So most participants are still observing for now,” a Chinese trader said Tuesday. In China, East China domestic prompt ex-tank cargoes was heard discussed at Yuan 5,300-5,320/mt on Tuesday with prices hovering around the same level towards the end of the day. The domestic East China marker was assessed at Yuan 5,310/mt, converting to an import parity of about $671/mt and was up some Yuan 90/mt from Tuesday. Meanwhile, inventory levels in Jiangsu, East China was heard at 71,200 mt on Tuesday as the week saw inventory growth of about 12,800 mt compared with an outflow of 13,500 mt, sources said, causing an overall inventory drawdown. “The market will be bullish due to crude. Chinese inventory down and demand will be in the market as of this week. Furthermore, the purchasing manger’s index in China seems to be good,” a South Korean source said Tuesday. On that note, the Caixin China Manufacturing PMI rose to 50.8 in March from 49.9 in February, rebounding from the three-year low observed in January at 48.3, according to a report by S&P Global Market Intelligence. A reading below 50 indicates contraction. Despite this, some in the market are still maintaining cautiousness. “[Spot] market is very quiet today morning, but lower tax rates in China could spur demand further,” a South Korean market source said Tuesday. In other markets, an H1 May 3,000 mt cargo was heard traded at $725/mt CFR Vietnam on Tuesday.

RATIONALE:

The FOB Korea marker was assessed at $675/mt FOB Korea Tuesday, up $6.50/mt from the previous assessment day, and was assessed above a best bid heard at $674/mt FOB Korea during the MOC assessment process Tuesday. The CFR China marker was assessed at $701/mt Tuesday, up $3/mt from Tuesday, tracking the FOB Korea up. The FOB Korea and CFR China markers take the average of the third and fourth half-month laycans, currently H1 and H2 May. H1 May was assessed at $701/mt and H2 May at $701/mt CFR China on Tuesday, changing the market to a flat structure from the backwardation on Tuesday, to track the domestic East China market structure.