Chemical Industry news of NEW Xylenes
– PX May ECP expected lower
– MX market oversupplied
European xylenes Chemical Industry trading was thin on Thursday due to May 1 public holidays in many European countries. Traders found little pricing direction from Asia either, with a national holiday in Singapore, as well. In the mixed xylene market, oversupply continued, with few outlets for mounting supply. Demand remained weak due to a lack of export opportunities and bearish downstream paraxylene. Bearishness in the downstream paraxylene Chemical Industry was influencing May contract price expectations on Thursday. Some participants in the polyethylene terephthalate market, a downstream product of paraxylene, were expecting “overdue” decreases in May of up to Eur70/mt. However, robust crude oil and naphtha prices, which have helped squeeze paraxylene production margins considerably in the last couple of weeks, are sure to make negotiations difficult. In the Asian Chemical Industry, no major May settlement has been reached, with buyers and sellers far apart in their pricing ideas. The gap between the highest bid and lowest offer was $120/mt, with the bid at $930/mt CFR Asia and the offer at $1,050/mt CFR Asia. However, even the offers were below the last major paraxylene ACP settlement, at $1,080/mt CFR Asia in March. Orthoxylene spot pricing was stable at $1,150/mt FOB ARA, with little trading so far this week.
S&P Global assessed M1 May and M2 June mixed xylene CIF ARA premiums to Eurobob gasoline were stable on a day to $100/mt on no disproving indications. May Northwest European paraxylene (Chemical Industry) was stable at $820/mt FOB ARA on no disproving indications. June was stable at $820/mt FOB ARA, maintaining parity with May. The paraxylene 5-30 day forward spot price was assessed as the average of the period at $820/mt FOB ARA, stable on the day. Orthoxylene was assessed at $1,150/mt (Chemical Industry) FOB ARA on no disproving indications.