TDI Chemical Price in India

Orthoxylene Chemical Industry

South Korea producers face competition from China „„

Downstream phthalic anhydride stable on week

Asian orthoxylene prices fell this week in thin discussion amid holidays in China and Japan. The CFR China marker was assessed down $25/mt week on week at $895/mt, above buying indications heard at $850/mt CFR and below an offer for Japan-origin cargo heard at $920/mt CFR Northeast Asia. The East China prompt price was heard at Yuan 6,900/ mt ex-tank Zhangjiagang, equating to $880-$890/mt CFR China on an import parity basis. State refiner Sinopec maintained its East China list price at Yuan 6,700/mt ex-tank. Sinopec was also heard to be offering 3,000 mt of spot OX for export in H2 May at $960/mt FOB China Friday. The state refiner last sold a spot cargo for H2 April loading at around $1,000/mt FOB China, market sources said. With European spot OX prices on the wane, European demand for June delivery cargoes from Northeast Asia had fallen, prompting producers to reduce offers, market sources said. The European OX contract price for April was fully settled at Eur930/mt ($1,036/mt), up Eur70/mt from March, S&P Global reported earlier. OX supply has remained tight since February due to production and supply issues in Europe and buyers there have resorted to looking to the US Gulf and, more recently, South Korea, for material. A 3,000 mt South Korean parcel sold via tender by Lotte Chemical in mid-April above $1,020/mt FOB Korea was heard to be heading to Europe by end June. The FOB Korea marker was assessed down $30/mt on the week at $980/mt, based on a trade heard at that level. South Korean producers are facing stiff competition from China, with state refiner Sinopec heard offering a 3,000 mt end May loading spot cargo for export this week at $960/mt FOB China. Southeast Asia was assessed at $995/mt, based on tradable indications heard at $990-$1,000/mt CFR, and tracking the fall in adjacent markets and at a freight netback to FOB China. The downstream phthalic anhydride market in both Northeast and Southeast Asia remained stable this week ahead of Ramadan and amid the holidays in China and Japan. PA was assessed unchanged on the week at $945/mt CFR China in the absence of bids and offers. The CFR SEA marker was assessed unchanged on the week at $1,070/mt, based on trades concluded at $1,060-$1,080/mt CFR SE Asia. In downstream plant news, South Korea’s LG Chem plans to restart its 60,000 mt/year PA plant in Yeosu around mid-May after shutting for maintenance in early April. In statistics news, China’s OX imports fell 62.6% on the month to 7,010 mt in March, with 5,000 mt arriving from India and 2,000 mt from Japan, latest customs data showed.

Rational

Asian OX was assessed down $25/mt week on week at $895/mt CFR China, down $30/mt at $980/mt FOB Korea and down $25/mt at $995/ mt CFR Southeast Asia Friday. A CFR China buying indication was heard at $850/mt CFR and a May delivery notional tradable indication at $880-$890/mt CFR China, based on the domestic East China import parity level. A CFR Northeast Asia offer was also heard at $920/mt. The FOB Korea marker was assessed at $980/mt based on a trade at that level. Southeast Asia was assessed at $995/mt based on tradable indications heard at $990-$1,000/mt CFR, and tracking falls in adjacent markets. SE Asia was assessed at a freight netback to FOB China on tradable indications of around $960/mt FOB.

 

Imported Data – Ethylene Chemical Industry

Imported Data

Ample supplies pressure Asia ethylene

Cracker run rates may be cut amid weaker margins

Imported Data of Asian ethylene – dropped $10/mt day on day Friday to three-month lows, dragged down by persisting heavy supplies. Northeast Asia market has dropped by a total of $40/mt since April 18, while Southeast Asia marked a $25/mt decline. S&P Global moved forward publishing its weekly assessments to Friday from Friday last week due to a public holiday in Singapore (Imported Data). Asian ethylene market sentiment remained bearish this week, dragged down by weak demand from end-users amid negative ethylene derivatives margins. Asian monoethylene glycol margin was reported to be poor with margins calculated at around minus $130-$140/mt this week, S&P Global Imported Data showed. On top of that, spot ethylene supplies are also heavy as an additional 12,000-13,000 mt of spot ethylene is seen to be available from Iran following a gas pipeline accident there, market sources said. The sources said Chinese traders were interested in taking Iran origin cargoes, but no fixture was heard so far due to difficulty in finding vessels. As a result, deal done levels reported in the market fell to $950/mt CFR NE Asia later this week from $970/mt (Imported Data) earlier. On the other hand, a decline in SE Asia ethylene market was limited on a week-on-week basis as some spot demand emerged for polyethylene production. A PE/ethylene spread was calculated at plus $175/mt Friday — based on SE Asia ethylene price — which is higher than a typical breakeven spread of $150/mt, Imported Data showed. Upstream, Asian naphtha market continued to climb this week to a six-month high, data showed. As a result, Asian ethylene/naphtha spread has been narrowing quickly to a five-month low of around $330-$340/ mt, the Imported Data showed. The spread is lower than a typical breakeven spread of $350/mt. Some market sources said steam cracker operators — especially in Southeast Asia — would start considering reducing their plant operations amid narrowing margins.

Rationale

CFR Northeast Asia ethylene price slid $10/mt (Imported Data) day on day to be assessed at $950/mt Friday with the latest deal reported done at $950/mt CFR NE Asia. Meanwhile, CFR Southeast Asia ethylene price dropped $10/mt to $890/mt during the same period in line with the bearish NE Asia market (Imported Data).

Imported Data
Imported Data

Styrene Chemical Industry

Chemical Industry

Supported by recent gains in Western crude

Styrene inventory down to 208,000 mt

Asian styrene monomer increased $7/mt from last Friday to $1,068/ mt CFR China and $1,028/mt FOB Korea Friday, supported by the recent gains in upstream western crude, where the June ICE Brent crude futures were up $2.45/b from last Friday at $74.21/b. Day on day, however, styrene prices inched down $5/mt, tracking the steep losses in benzene and ethylene, which were down $14/mt FOB Korea and $10/mt CFR Northeast Asia Friday, respectively. Bids were heard at $1,065/mt CFR China for June-arrival styrene cargoes but it did not attract any selling interest. Discussions were thin and rangebound in the East China domestic market and the May marker fell Yuan 40/mt on the day to Yuan 8,210/mt ex-tank Friday. The drawdown in east China styrene inventory continued, with consumption and arrivals at 20,700 mt and 11,000 mt, respectively, bringing the inventory down to 208,000 mt. However, sources noted that with the exception of China, Asia is facing tighter supply due to the ongoing plant maintenances in the region. Sources added that delayed deepsea cargoes from the US due to the tank fire earlier have further tightened supply in Asia. Besides, Taiwan is also experiencing delayed styrene shipment of Korean material. “Logistical reasons have led to tighter supply in Taiwan for the time being,” said an Asian producer. Weekly styrene was assessed at $1,059/mt CFR Southeast Asia, up $8/mt from last Friday, and $1,062/mt CFR India Friday, up $7/mt from last Friday.

Rationale

Asian SM was assessed down $5/mt on the day at $1,068/mt CFR China and $1,028/mt FOB Korea Friday. The markers currently take the average of the H2 May and H1 June laycans. There were no transparent bids or offers during the market on Close assessment process on Friday. H1 June was assessed at the pegged level of $1,068/mt, above a bid last seen at $1,065/mt CFR China. Maintaining the pegged flat May/June spread, H2 May was assessed at $1,068/mt. In the east China domestic market, the May marker was assessed down Yuan 40/ mt on the day at Yuan 8,210/mt ex-tank, equating to $1,058.29/mt on an import parity basis. The FOB Korea marker was assessed at $1,028/ mt, based on the pegged $40/mt spread to CFR China, while the CFR Taiwan marker was assessed at $1,058/mt, based on the pegged $10/ mt spread to CFR China.

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

benchmark FOB Korea benzene Chemical Industry discussions surged early Tuesday

Chemical Industry

– South Korean Apr 1-20 exports to US increase

– FOB Korea-CFR China spread at minus $13.33/mt

Amid a $2.15/b surge in June ICE Brent crude oil futures over the Easter holidays, benchmark FOB Korea benzene Chemical Industry discussions surged early Tuesday, as traders continued to bid for H2 May-loading material, as movement of material to the US from South Korea Chemical Industry is still expected to continue in May. Statistics seen Tuesday of South Korea’s April 1-20 exports of benzene showed that the country had exported 200,440 mt over the period, with 34% of total export volume headed toward the US, up 21 percentage points from March. Exports to China stood at 42% of total export volume, down 37 percentage points from March. This is in line with a negative FOB Korea-CFR China arbitrage, with CFR China assessed lower than FOB Korea since April 1. CFR China was assessed at $638/mt Tuesday, $13.33/mt lower than FOB Korea Chemical Industry, keeping the arbitrage tightly shut on paper. At the same time, June FOB USG paper was assessed at 225 cents/gal last Tuesday, or $672.75/mt. While the $36.75/mt price spread between FOB USG paper and the FOB Korea benchmark is insufficient to cover spot freight between South Korea and US Gulf Coast, traders continued to be heard actively seeking H2 May-loading material for shipment to the US. Over in the Southeast Asian Chemical Industry, market sources expressed surprise at a lower-than-expected pricing, despite demand for Southeast Asian material from Taiwan and Europe. May-loading FOB Southeast Asia was heard last traded at minus $30-31/mt to the FOB Korea benchmark. This despite multiple traders having heard to be moving benzene from Southeast Asia to Europe, amid an open arbitrage.

RATIONALE:

FOB Korea benzene was assessed up $15.33/mt from last Tuesday at $651.33/mt Tuesday. The marker takes the average of the third, fourth and fifth half-month laycans, H2 May, H1 June, and H2 June. During the Chemical Industry on Close assessment process Tuesday, GS Caltex bid H2 May at $635/mt CFR China. The H2 May laycan was assessed at $650/mt FOB Korea, above a bid last seen at $649/mt FOB Korea. The H1 and H2 June laycans were assessed at $652/mt FOB Korea, keeping the H2 May/June spread at the pegged level of minus $2/mt, above a bid last seen at minus $3/mt. The CFR China marker was assessed up $10/mt on the day at $638/mt. H2 May was assessed at $636/mt CFR China Chemical Industry, above GS Caltex’s bid at $635/mt. The H1 June laycan was assessed at $640/mt, assessing the H2 May/June spread at the pegged level of minus $4/mt. The East China marker was assessed up Yuan 30/mt on the day at Yuan 4,483/mt, or $580.26/mt on an import parity basis.

Chemical Industry
Chemical Industry

Asia and Middle East Naphtha Chemical Industry Commentary

Chemical Industry

Trade activities faded in the Asian naphtha Chemical Industry Friday ahead of the Good Friday holiday. Sentiment over the supply-demand balance was softer, largely due to expectations that the prompt laycans would see more weight on supplies. “Chemical Industry looks oversupplied for early arrival cargoes, like [late] April, early May,” a trader said. A handful of sources expect around 1.7 million mt of arbitrage volume to hit the Far East in April, and estimated May-arrival naphtha to be around 1.4 million mt. On spot activities, UAE’s Abu Dhabi National Oil Co. offered 75,000 mt paraffinic naphtha for May 24-27 loading from Ruwais. The tender closed late Friday, and bids remain valid until April 19. Bharat Petroleum Corp. Ltd. sold up to 30,000 mt of naphtha Chemical Industry with minimum 68% paraffin and maximum 250 ppm sulfur for April 27-30 loading, at a premium around $5.5-$6/mt to the average of and Petroleum Argus Arab Gulf naphtha assessments, FOB. The buyer was Petro China Chemical Industry. On shipping, downward pressure on freight rates for clean tankers moving along the Arab Gulf-Japan route extended further, with the LR2 vessel chartering cost dipping to $19.91/mt Friday, and marking the weakest level seen since late October last year. The LR1 vessel chartering cost held steady for three sessions at $22.07/mt, but was still the lowest since mid-September last year.

Chemical Industry
Chemical Industry

Asian Phenol/Acetone Chemical Industry – Prices stable amid demand lull in China

Chemical Industry

PHENOL Chemical Industry: Asian phenol prices were assessed stable week on week at $1,010/mt CFR China, $1,040/mt CFR Southeast Asia and $1,050/mt CFR India Thursday. China domestic prices were heard stable to slightly weaker to be assessed at Yuan 7,700/mt, equating to $962.60/mt on an import parity basis. One buyer indicated interest on a CFR China basis at $980/mt, similar to the week before. Another end-user said demand in China remained sluggish due to lowered operating rates and safety checks at downstream plants in east China following plant explosions in the region in recent weeks. In Taiwan, Formosa Chemicals and Fibre Corp. has delayed the restart of its phenol/acetone plant at Mailiao, possibly to next week, Chemical Industry sources said. It was not immediately clear why the restart was postponed; it had been due to restart this week, sources said. The plant, which can produce 400,000 mt/year of phenol and 250,000 mt/year of acetone, has been shut for about 40 days of scheduled maintenance.

ACETONE Chemical Industry: Acetone prices were also largely stable this week, with CFR China assessed at $380/mt and CFR Southeast Asia at $460/mt. Domestic prices in China were assessed unchanged on the week at Yuan 2,925/mt, equating to $365.70/mt on an import parity basis. Prices on a CFR Southeast Asia basis were heard negotiated around $440-$500/mt, with the Vietnamese import market priced at the lower end of that range, according to Chemical Industry sources. CFR Southeast Asia was assessed unchanged on the week at $460/mt. Some tradable indications for CFR India were heard as low as $330/mt, but a majority of market sources polled pegged the price around $360-$370/mt. The CFR India Chemical Industry was assessed down $25/mt on the week at $365/mt. Upstream, propylene was assessed at $865/mt FOB Korea Thursday, unchanged on week.

NWE Styrene – Spot prices rise as market seeks forward cargoes

Chemical Industry

– May trades at $1,133/mt

– Chinese stocks decline

European spot styrene rose Thursday as market participants sought to secure volumes for forward deliveries. S&P Global  assessed styrene for loading 5-30 days forward at $1,133.50 /mt FOB ARA, up $4.50/mt on the day. A trade was heard at $1,133/mt FOB ARA for May loading. Buy interest was again the talking point as global turnarounds continue to halt supply. A trader said May traded several times. As trading moved to forward months, a source said there was still interest for prompt cargoes following April trades Thursday and Thursday. “April still has some demand so [it] is pretty strong,” a broker said. Upstream, the European benzene market surged following news of trades for both May and April. A deal was heard done at $765/mt for April and $725/mt for full-May. In Asia, styrene rose $9/mt on the day to $1,062/mt CFR China and $1,022/mt FOB Korea Thursday. According to market sources, total styrene stocks in east China fell 23,000 mt on the week to 227,000 mt. Consumption at 38,000 mt outstripped arrivals of 15,000 mt.

RATIONALE:

S&P Global  assessed styrene for loading 5-30 days forward at $1,133.50/mt FOB ARA Thursday, up $4.50/mt on the day. April was assessed at $1,135/mt, up $5/mt on the day, based on a stable $2/mt backwardation to May. May was assessed at $1,133/mt, up $5/mt on the day, in line with earlier trade at $1,133/mt.

 

Asian Propylene: CFR China propylene stays unchanged

Chemical Industry

– Buyers stay on sidelines waiting for direction

– Flexible Packaging to shut 2 PP plants May 7

The Asian propylene market remained stable Monday as buyers in China were reluctant to make spot purchases and preferred to wait for a clearer direction, sources said. “Today trade activity slowed down,” said a Korea-based trader who noted that buyers were very cautious about buying. “Today buyers are very cautious and want to know seller indications,” the trader said. Shandong and East China prices remained unchanged from Friday at   Yuan 7,250/mt and Yuan 7,050/mt, respectively, Monday, both on an ex-work basis. In plant news, China Flexible Packaging Group plans to shut two          polypropylene plants, each with a 500,000 mt/year capacity, in Jiangyin, Fujian province, by May 7, a company source said Monday. “We will shut both PP plants on May 7 — one will be shut for three weeks, the other for two weeks,” the source said. During the shutdowns, the company will reduce its purchase of feedstock propylene. The company buys 60,000 mt/month of imported propylene and 20,000 mt/month of domestic material as feedstock, the source said. “We will buy less than 30,000 mt propylene for May. We will buy less domestic and imported propylene,” the company source added. China’s Fujian Meide Petrochemical, a wholly owned subsidiary of China Flexible Packing Group, plans to delay the startup of its newly built propane dehydrogenation plant in  Jiangyin, Fujian province, to August, two months later than earlier 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.

RATIONALE:

The CFR China propylene marker remained unchanged from Friday at $905/mt Monday, as price discussions stood at around $900-$910/mt CFR China. The FOB    Korea marker was assessed unchanged day on day at $865/mt, below selling indications at $880/mt FOB Korea, and above buying indications at $$850/mt FOB Korea. Domestic prompt prices in Shandong were assessed down unchanged at Yuan 7,250/mt ex-works, amid muted trading. The East China price was also assessed unchanged on day at Yuan 7,050/mt ex-works.

Chemical Industry
Chemical Industry

Methanol Chemical Industry

Chemical Industry

Thin discussions in China, S Korea, Taiwan

Ample Middle East cargoes in SEA in H2 May

The Chinese methanol Chemical Industry ended the week on a muted note. Offers ranged from $280/mt to $305/mt CFR for May-arrival but buying interest was tepid. Traders rued that bids were few and buying sentiment weak. In Taiwan, fundamentals were stable to a little bearish, with end-users ensconced in sufficient inventory. “In March, most Chemical Industry participants expected April demand to be better, but formaldehyde demand is bad because the plywood industry, which is related to construction and real estate, is not so good in Taiwan,” a trade source said. He added that their term supplier had pushed them to lift more term cargoes, but he declined as he had more than enough stock. In South Korea, domestic Chemical Industry was stable and discussions for imported cargoes were thin. In Southeast Asia, trade sources said the market was a little firm in the first half of May, but a number of Middle Eastern cargoes were arriving in the region from May 15 and cargoes were being offered at $330/mt CFR for Southeast Asian main ports.

Rationale

Methanol was assessed at $298/mt CFR China Friday for cargoes delivered 20-50 days forward, unchanged day on day, amid stable Chemical Industry fundamentals. Domestic east China prices edged up Yuan 5/ mt to Yuan 2,455/mt Friday and were up Yuan 15/mt week on week, amid discussions at Yuan 2,450-2,460/mt. The CFR Southeast Asia marker was assessed at $335/mt Friday, up $2/mt day on day after taking into consideration a $5/mt backwardation between H1/H2 May. The CFR Korea marker was stable on week at $327/mt CFR, under a selling idea of $328/mt CFR for a 5,000 mt cargo arriving in H2 May. The Taiwan marker was stable week on week at $303/mt CFR amid thin discussions and stable Chemical Industry fundamentals.

Chemical Industry
Chemical Industry