Phenol Prices in India

Asian Toluene Chemical Industry: Rebounds as domestic China prices strengthen

Chemical Industry

Chemical Industry news of Asian Toluene

– Domestic prices rise Yuan 70/mt on day

– CPC issues June sell tender

Asian toluene prices rebounded Wednesday, rising $6/mt day on day to be assessed at $674/mt FOB Korea, tracking a recovery in crude oil prices and China’s domestic Chemical Industry. The ICE July Brent crude oil futures pared some losses while market participants stayed cautious amid renewed US-China trade tensions, ending $1.19/b higher on the day to $70.97/b at the 0830 GMT Asian close Wednesday. During the Chemical Industry on Close assessment process Wednesday, no transparent bids or offers were received, but an unregistered offer was heard at $695/mt CFR China for a 2,000-mt June cargo. Prompt domestic Chinese negotiation levels were heard around Yuan 5,250-5,270/mt levels, and was assessed at Yuan 5,260/mt Wednesday, up Yuan 70/mt on the day. “Buying appetite for toluene in China is generally low at the moment but an upward correction might be due later in June,” a Chemical Industry source said. Elsewhere, Taiwan’s state-owned CPC has issued a tender offering two 3,000 mt cargoes of toluene with minimum 99.5% purity for loading over H1 or H2 June in Kaohsiung. The tender closes May 7. The Chemical Industry last sold at least two toluene cargoes of 3,000 mt each for loading over May from Kaohsiung. Buyer details could not be confirmed.

RATIONALE:

Toluene was assessed at $674/mt FOB Korea and at $694/mt CFR China on Wednesday, up $6/mt and $10/mt respectively on the day. The markers take the average of the third and fourth half-month laycans, currently H1 June and H2 June. During the Chemical Industry on Close assessment process, no transparent deals, bids or offers were seen. The CFR China marker was assessed below the lowest June offer on Wednesday heard at $695/mt CFR China. Earlier in the afternoon, a June offer was heard at $675/mt FOB Korea, against no bids. The East China domestic prompt price was higher on the day by Yuan 70/mt at Yuan 5,260/mt on Wednesday, with tradable indications heard between Yuan 5,250-5,270/mt (Chemical Industry).

 

Chemical Industry
Chemical Industry

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

US MTBE Chemical Industry: Spot dips 4 cents

Chemical Industry

– MOC offer seen at 206.50 cents/gal

– Discount to FOB ARA narrows

Spot Gulf Coast MTBE was assessed flat to NYMEX June RBOB as an offer in the Chemical Industry on Close assessment process set the ceiling for pricing. In the MOC assessment process, Lukoil came in with an offer at 208 cents/gal FOB USG for 45,000 barrels, walking it down to 206.50 cents/gal. No bids or trades were seen. While spot remained flat to RBOB, the discount to the FOB ARA marker narrowed to 17.22 cents as European Chemical Industry MTBE saw a noticeable drop in pricing. On Thursday, the FOB ARA marker fell nearly 11 cents to 223.69 cents/gal FOB ARA amid heavy selling.

RATIONALE:

S&P Global assessed spot USG MTBE at 206.47 cents/gal FOB USG, down 4.03 cents on the day. The assessment came below an offer in the Chemical Industry on Close assessment process and was flat to the assessment of NYMEX June RBOB.

Chemical Industry
Chemical Industry

Toluene Chemical Industry

Chemical Industry

Weaker energy complex, demand lackluster

Prompt Chinese prices shed Yuan 35/mt

Chemical Industry news – Asian toluene fell day on day by $16/mt to $698/mt FOB Korea on Friday as offers moved lower without any signs of buying interest emerging in the Chemical Industry amid a weaker crude complex. H2 May was last heard offered at $700/mt FOB Korea, versus no bids. The ICE June Brent crude oil futures declined at the 0830 GMT Asian close Friday, ending $1.07/b lower on the day at $74.21/b. In related Chemical Industry, naphtha was assessed at $607.50/mt CFR Japan Friday, putting the toluene-naphtha spread at $90.50/mt, down $35.50/mt week on week. CFR China discussions also weakened, tracking lukewarm demand in the domestic Chemical Industry. With cheaper cargoes available domestically, low interest was seen for imported material, market sources said. Prompt domestic prices retreated from the previous day by Yuan 35/mt to Yuan 5,355/mt on Friday, equating to $677.38/mt on an import parity basis. In the Taiwan Chemical Industry, demand for toluene remained tepid. The fire-hit Formosa Chemicals and Fibre’s No. 3 aromatics plant in Mailiao will likely remain shut until the first half of June, S&P Global  reported earlier. In Southeast Asia, end-user demand was also seen low with distributors reluctant to purchase at high prices. Meanwhile in the India Chemical Industry, demand remained steady on week while sources noted some disruptions in cargo arrivals from Iran. “India is in election mode right now … after the [local] government is stabilized, growth should come,” said a market source.

Rationale

The FOB Korea Chemical Industry was assessed lower day on day by $16/mt at $698/mt FOB Korea on Friday. The marker takes the average of the third and fourth half-month laycans, currently H2 May and H1 June. No transparent offers or bids were seen during the  Chemical Industry on Close assessment process. An H2 May offer was heard at $700/mt FOB Korea. The CFR China marker was assessed at $715/mt, down $16/mt, tracking the domestic East China marker and FOB Korea lower, largely due to thin trades. The East China domestic prompt price was lower day on day by Yuan 35/mt at Yuan 5,355/mt on Friday, with bid-offer heard between Yuan 5,350/mt and Yuan 5,360/mt. CFR Taiwan was assessed at $711/mt (Chemical Industry), down $12/mt on the week, tracking the CFR China lower. CFR India was assessed at $757/mt, down $9/mt on the week, on tradable indications heard at a premium of around $59/mt to FOB Korea this week. FOB Southeast Asia was assessed at $702/mt, down $12/mt on the week, with the CFR Southeast Asian marker assessed at $741/mt (Chemical Industry), down $12/mt on the week.

Chemical Industry
Chemical Industry

The US Gulf Coast MTBE market extended declines Thursday

– Offer in MOC process falls to 211 cents/gal

– Spot falls below NYMEX RBOB futures

The US Gulf Coast MTBE market extended declines Thursday as an offer in the  Market on Close assessment process continued to attract no buying interest. The lower offer pulled spot values below NYMEX RBOB gasoline futures for the first time since early March. Lengthening global supply has weighed on spot prices.

RATIONALE:

S&P Global assessed spot Gulf Coast MTBE at 210.95 cents/gal Thursday, down 5.05 cents from Thursday. The assessment was below an offer in the Market on Close assessment process at 211 cents/gal FOB USG.

Chemical Industry
Chemical Industry

NWE Xylenes Chemical Industry – PX prices stable, MX premium falls

Mathanol Prices

– MX, PX supply plentiful

– Asian PX rises $5.16/mt

European paraxylene spot prices were stable on Wednesday, despite gains seen in the Asian Chemical Industry. European mixed xylenes moved lower on a lack of demand. “I heard plus $100/mt over Eurobob [gasoline] for MX, I heard some higher offers but I don’t think somebody will pay more than $100/mt,” a trader said. Supply in the mixed xylene and paraxylene Chemical Industrys in Europe was still plentiful, and there was little demand from the petrochemical sector. Most consumers were covered by contractual volumes. Depressed downstream prices and a lack of export opportunities on high global supply weighed on spot demand in Europe. Supplies in the European orthoxylene maeket remain thin. OX contract negotiations have been complicated, market sources say. Many Chemical Industry participants expect the contract to settle over Eur900/mt, up from the March settlement at Eur860/mt. In Asia, PX 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 fall in PX prices, with most participants choosing to remain on the sidelines awaiting fresh direction.

RATIONALE:

S&P Global  assessed M1 April and M2 May mixed xylene CIF ARA premiums to Eurobob gasoline down $5/mt on the day at $110/mt, moving towards a trader indication at $100/mt, with higher offers in the Chemical Industry. April Northwest European paraxylene was stable at $840/mt FOB ARA, amid no disproving indications in thin trade. May was also stable at $840/mt FOB ARA, maintaining parity with April. The paraxylene 5-30 day forward spot price was assessed as the average of the period at $840/mt FOB ARA, up $5/mt on day. Orthoxylene was assessed at $1,150/mt FOB ARA, stable on the day amid no disproving indications (Chemical Industry).

Chemical Industry
Chemical Industry

NWE Benzene Chemical Industry – Tight prompt supply supports May pricing

Chemical Industry

– May up $11/mt

– Crude surges $2.59/b

The 5-30 days forward assessment for benzene rose 50 cents/mt on Wednesday to $749.50/mt CIF ARA, following the long Easter weekend in Europe Chemical Industry. Few days remained for April trading on Wednesday, suggesting any further business would take place for May. May bid and offer levels continued to rise, showing no significant change in prompt value was expected as the month roll approached. June and July offers fell, however. This came despite some bullish moves upstream in the crude energy complex. The 16:30 London ICE Brent price was up $2.59/b from Wednesday to $74.41/b. No assessments were made Wednesday or Wednesday due to public holidays in the UK Chemical Industry. The upwards momentum for benzene could falter mid-May, as more imports are expected to arrive in Europe.

RATIONALE:

S&P Global assessed benzene for delivery 5-30 days forward at $749.50/mt CIF ARA Wednesday (Chemical Industry), up 50 cents from Wednesday. April was assessed stable at $765/mt, within a bid-offer range of $750-$770/mt. May was assessed at $746/mt, up $11/mt based on a curve. 1H May was assessed at $751/mt, based on a bid-offer range of $750-$760/mt. 2H May was assessed at $741/mt, based on a bid-offer range of $740-$750/mt. June was assessed at $714/mt, down $5/mt, based on a bid-offer range of $700-$715/mt (Chemical Industry). July was assessed at $709/mt, below an offer of $710/mt. August was assessed flat to July. FOB was assessed at $749.50/mt, flat to CIF.

Chemical Industry
Chemical Industry

NWE Oxy Solvents: Chemical Industry Acetone hits price floor; MEK stabilizes

Chemical Industry

ACETONE/PHENOL: The fall in acetone spot pricing in Europe was broken this week, with the Chemical Industry believing prices had hit a floor. After a couple of weeks of speculation, it seemed some producers had reduced production rates to help rebalance supply. Previously, producers had been reluctant to reduce production rates because of high demand for phenol Chemical Industry. However, this week it appeared the economics were no longer working. “Acetone is balancing a bit. I think we’ve reached the bottom. Some suppliers have even said they cannot supply full volumes in May unless you pay more for some of it,” a source said. “I am expecting a bounce back in acetone pricing,” a source said. Acetone was assessed at Eur450/mt FD NWE, up Eur25 on the week. An indication was heard at just below Eur500/mt FD NWE, but these levels were not currently being seen in the Chemical Industry. Phenol spot demand was strong this week, though spot trading was thin due to most commitments being met by contractual volumes. The phenol premium to benzene was stable on the week at Eur600/mt FD NWE.

ETAC/BUTAC (Chemical Industry): Etac spot pricing recovered slightly this week, rising Eur10 to close at Eur920/mt FD NWE, within ranges heard at Eur870-Eur950/mt by sources. The increases were seen due to pressure on producers’ margins because feeds tocks acetic acid and ethylene have been stable or increased in April, while etac spot pricing has fallen due to oversupply. Still, there was “quite high supply in ARA,” a source said, adding “it has meant a parcel from the Middle East had no buyer and also no space to discharge.” Although the Chemical Industry was absent from material from Mexico, a regular import source, market participants said there more than sufficient alternative supply from Sweden and Ukraine, especially. The European butac Chemical Industry was quiet again this week, with pricing stable at Eur1,050/mt FD NWE, within a range heard at Eur1,040-Eur1,060/mt.

IPA/MEK: Methyl ethyl ketone Chemical Industry  spot prices were stable this week, following sharp rises so far in April, led by increased demand for European material due to production issues at a plant in Taiwan. This week, however, it seemed the increases seen in offers had stalled at Eur1,400/mt FD NWE. One distributor did question whether these levels were being achieved in the Chemical Industry since demand in Europe appeared to be relatively low. “Whatever I offer the customers say it is too expensive. Maybe they just don’t need the material,” a source said. Some buying ideas were heard around the Eur1,250/mt FD NWE mark, but on the whole, Chemical Industry sources converged closer to the offer levels. Spot pricing was assessed stable at Eur1,375/mt FD NWE.

Asian Iso-MX: Slides $1-$5/mt as PX weakens

Chemical Industry

– H2 May FOB Korea cargo trades

– Crude rises $1.30/b on day

Asian isomer-grade mixed xylene prices slipped day on day by $5/mt to $721/mt FOB Korea and by $1/mt to $738/mt CFR Taiwan Thursday, as downstream paraxylene prices were seen under pressure. MX prices dropped despite firm downstream crude oil. June ICE Brent crude futures rose $1.30/b to $72.13/b at 0830 GMT in Asian trade. A trader noted that sentiment in the MX market was getting weaker, adding that MX and PX had decoupled recently and PX price moves had less impact on MX prices currently. The same trader added that prices could not fall drastically, as demand was stable from Chinese buyers at $735-$740/mt CFR China. A separate trader agreed that prices in MX were more likely to move lower.

RATIONALE:

Isomer-MX was assessed lower day on day by $5/mt at $721/mt FOB Korea and by $1/mt at $738/mt CFR Taiwan Thursday. 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  Market on Close assessment process, a cargo for H2 May loading was heard offered by Samsung C&T at $721/mt FOB Korea, at which it traded, with GS Caltex being the buyer. The H2 May laycan was assessed at the deal level of $721/mt FOB Korea, and H1 June flat to H2 May was also assessed at $721/mt FOB Korea. No bids or offers were heard for CFR Taiwan, but the marker was assessed lower by $1/mt, tracking FOB Korea prices. The above rationale applies to the following market data codes: PHAUV00 for FOB Korea and PHAUT00 for CFR Taiwan.

 

Chemical Industry
Chemical Industry

Asian Styrene: Falls $10/mt, $1,061/mt CFR China, $1,021/mt FOB Korea

Chemical Industry

– Demand stable but insufficient to lower inventory

– S Korea’s styrene imports surge 134% in March

Asian styrene monomer started the week lower at $1,061/mt CFR China and $1,021/mt FOB Korea Monday, down $10/mt from Friday amid thin trading and as the market looks for a clearer price direction. In east China domestic market, the prompt marker fell Yuan 100/mt from Friday to Yuan 8,100/mt ex-tank Monday. A trader said while downstream demand is relatively stable, it remains insufficient to eliminate the huge inventory and the market has been paying attention to the inventory situation. Sources further noted that styrene demand from the downstream market has improved from the previous week. “The market is expecting more styrene to arrive into China once most of the planned maintenances end in May,” a market participant said. According to market sources, total styrene inventory in east China fell slightly by 5,000 mt weeks on a week to 350,000 mt, with consumption of 24,000 mt exceeding arrivals of 19,000 mt. Upstream benzene and ethylene have also softened from Friday at $621/mt CFR China and $1,020/mt CFR Northeast Asia Monday. Styrene production margin remains healthy at $108.20/mt. In trade statistics news, South Korea’s styrene imports surged 133.6% on the month, or 302.9% year on year, to 77,540   mt in March amid tight supply during the turnaround season from March to May and robust downstream polystyrene production margins, which support the steady demand for the SM, market sources noted. Meanwhile, styrene exports from South Korea rose 11.4% on the month, or 18% year on year, to 54,653 mt in March.

RATIONALE:

Asian SM was assessed down $10/mt from Friday at $1,061/mt CFR China and $1,021/mt FOB Korea Monday. 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 Monday. H1 and H2 May were assessed at the pegged level of $1,061/mt. In the east China domestic market, the prompt marker was assessed down Yuan 100/mt from Friday at Yuan 8,100/mt ex-tank, equating to $1,047.14/mt on an import parity basis. The FOB Korea marker was assessed at $1,021/mt, based on the pegged $40/mt spread to CFR China, while the CFR Taiwan marker was assessed at $1,049/mt, based on the pegged $12/mt spread to CFR China.