Toluene Prices in India

Asian PX Chemical Industry: Rises $5.16/mt on day, tracking upstream gains

Chemical Industry

– Quiet discussions as traders remain cautious

– Yisheng to shut No.3 PTA line for 15 days

Asian paraxylene 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 plunge in PX prices, with most participants choosing to remain on the sidelines awaiting fresh directions. During the  market on Close assessment process Wednesday, there was a dearth of buying interest, with an outstanding July offer from Yisheng at $988/mt remaining at the end, with no Chemical Industry participant expressing any interest. The June/July backwardation was assessed at $8/mt Wednesday, below an outstanding June/July timespread offer from Glencore at $9/mt. Upstream, the Asian naphtha front-month swaps soared above $600/mt Wednesday to a near six-month high on strength in the crude Chemical Industry. The May Mean of  Japan naphtha swaps were assessed at $601.5/mt at Wednesday’s Asian close, up $19/mt from the previous session, and was the largest single day jump since late January this year. Meanwhile, June ICE Brent crude futures rose to $74.33/b at 4:30 pm Singapore time Wednesday, close of Asian trade, up $0.42/mt on the day. In downstream plant news, China’s Yisheng Petrochemical plans to shut its 2.2 million mt/year No. 3 purified terephthalic acid line (Chemical Industry) at Ningbo on April 27 for 15 days of maintenance, a company source said Wednesday. The company is capable of producing a total of 13.75 million mt/year of PTA across three sites in China — Ningbo, Dalian and Hainan. China’s domestic PTA prices were supported Wednesday, with the most actively traded September futures contract on Zhengzhou Commodity Exchange rising Yuan 22/mt from Wednesday’s settlement to Yuan 6,082/mt at 3 pm local time Wednesday, close of afternoon trade. The Asian PTA profit margin was widening amid the falling feedstock cost of paraxylene, with the PX/PTA spread last calculated at $196/mt for CFR China Wednesday, according to S&P Global data (Chemical Industry).

RATIONALE:

Asian PX prices were assessed up $5.16/mt from Wednesday at $973.33/mt CFR Taiwan/China and $954.33/mt FOB Korea Wednesday. The Chemical Industry take an average of the H1 and H2 June, and H1 July laycans. The June laycans were assessed at the peg of $976/mt. The H1 July laycan was assessed at the peg of $968/mt, below an outstanding offer from Yisheng at $988/mt, and at the pegged $8/mt backwardation to the June laycans, down $0.50/mt on the day, below an outstanding June/July timespread offer from Glencore at $9/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 Toluene Price: Sentiment mixed amid thin trading

Chemical Industry

– CFR China gains on rising crude

– Buying interest in domestic Chinese Chemical Industry thin

Sentiment in the Asian Toluene Price market was mixed Wednesday, with participants noting a divergence between the Chinese domestic market and the international market. The CFR China marker was assessed at $731/mt Wednesday, up $8/mt (Toluene Price) amid the rise in upstream energy Chemical Industrys, and on the back of firm bids. The ICE June Brent crude futures rose 42 cents/b day on day to $74.33/b at the 0830 GMT Asian close Wednesday, hovering around the highest levels in six months. On the other hand, domestic Chinese activity remained lackluster, as buying interest was thin (Toluene Price). “[There are] not too many bids and offers, because downstream consumption is bad,” a Chemical Industry source said. Domestic Chinese negotiation levels were heard around Yuan 5,350-5,380/mt levels, and was assessed at Yuan 5,360/mt Wednesday, largely unchanged from the day before. Meanwhile, the FOB Korea Chemical Industry, demand remained stable with requirements from the gasoline-blending sectors though trading activity was largely muted (Toluene Price).

RATIONALE:

The FOB Korea marker was assessed at $714/mt FOB Korea Wednesday (Toluene Price), flat from a day before amid thin discussions. No transparent offers or bids were seen during the  Chemical Industry On Close assessment process Wednesday. The marker takes the average of the third and fourth half-month laycans, currently H2 May and H1 June (Toluene Price). The CFR China marker was assessed above the highest June bid heard on Wednesday during the Chemical Industry on Close assessment process at $730/mt CFR China (Toluene Price). The East China domestic prompt price was unchanged at Yuan 5,360/mt on Wednesday, with bid-offer heard between Yuan 5,350 and 5,380/mt.

 

Toluene Price
Toluene Price

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

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

Asian Benzene – FOB Korea up $3.66/mt, CFR China assessed unchanged

Chemical Industry

– May-loading FOB Korea supply expected to grow

– Closed arbitrages limit CFR China demand

Asian benzene prices were stable to up $3.66/mt on day amid gains in global benzene prices and crude oil futures. With laycan declaration for May FOB Korea material concluded Friday, H2 May offers emerged Friday, with supply heard more than demand for benzene loading. June FOB USG paper was assessed unchanged on the day at 228 cents/gal Friday, or $681.72/mt, and the spread between May FOB Korea and and June FOB USG paper stood at $52.05/mt. While spot freight between South Korea and the US was heard at $60-$65/mt, market sources acknowledged that with a contract of affreightment, freight rates could be lower. With 20,534 mt of benzene loaded from Korea for shipment to the US between April 1-10, market sources said that it was possible that supply would outweigh demand upon arrival of the material. Nonetheless, demand for benzene in the US continued to be heard firm. Over in the CFR China market, trading continued to be heard thin. With poor CFR China demand, CFR China prices have been below that of FOB Korea since April 1. S&P Global  assessed the CFR China/FOB Korea spread at minus $21.33/mt Friday. Amid negative spreads, both buyers and sellers were heard not keen to discuss prices.

RATIONALE:

FOB Korea benzene was assessed up $3.66/mt on the day at $633.33/mt Friday. The marker takes the average of the third, fourth and fifth half-month laycans, H1 May, H2 May and H1 June. During the  Market on Close assessment process Friday, no transparent bids or offers were seen. The H1 and H2 May laycans were assessed at $632/mt FOB Korea, widening the May/June spread to minus $4/mt Friday from minus $2/mt Friday, based on available supply for H2-May-loading material. The H1 June laycan was assessed at $636/mt FOB Korea, above a bid last at $635/mt. The CFR China marker was assessed down $3/mt on the day at $609/mt Friday, below sell indications for May-arrival material heard at $610/mt CFR China. The East China marker was assessed up Yuan 10/mt on the day at Yuan 4,417/mt, or $571.18/mt on an import-parity basis.

 

Chemical Industry
Chemical Industry

NWE Xylenes – MX premiums drop; US arb unworkable.

Chemical Industry

– PX spot begins to settle, April stable

– MX April cargo availability surfacing

European mixed xylene premiums to Eurobob gasoline for April and May fell $7/mt on the day to $123/mt CIF ARA Thursday. Though some demand was seen in the market for April cargoes, bids surfaced lower on Thursday. In part, this came from a lack of export opportunity to the US, one trader said. “No one can take product from Europe [to the US] because they can’t discharge… Terminals are shut,” the trader added. This was following the recent fires at the Intercontinental Terminal Company’s (ITC) petrochemical storage farm in the Houston Ship Channel. Additionally, European material was said to be uncompetitive with Korean material for US buyers. On the whole, availability was improving in Europe, with some cargoes heard for H1 April as well as the H2 April cargoes heard on Thursday. European paraxylene spot prices were more stable Thursday following sharp declines last week. April was unchanged at $937/mt, while May fell $3.25/mt to $931.25/mt FOB ARA. Bearishness from the Asian market was mirrored in Europe, with news earlier in the week that China’s Hengli Refining and Chemical Co should start producing on-specification paraxylene at its 1.5 million mt/year plant by June. European orthoxylene spot prices were stable at $1,000/mt FOB ARA, with no new cargoes heard booked.

RATIONALE:

S&P Global Thursday assessed the M1 April mixed xylene CIF ARA premium to Eurobob gasoline down $7/mt on day to $123/mt Thursday, within a range heard at $120-$140/mt, amid poor demand. The best bid was heard at $741/mt and an offer was heard at a premium to Eurobob gasoline at $140/mt. The M2 May MX CIF ARA premium fell $7/mt to $123/mt, on the same indications. April Northwest European paraxylene was stable at $937/mt FOB ARA, tracking the CFR Taiwan/China H2 May laycan. May fell $3.25/mt to $931.25/mt FOB ARA, tracking the CFR Taiwan/China H1 June laycan. The paraxylene 5-30 day forward spot price was assessed as the average of the period at $937/mt FOB ARA, stable on day. Orthoxylene was assessed stable at $1,000/mt FOB ARA, amid no disproving indications.

 

NWE Toluene – Premiums steady on March trading

– Deal seen at $170/mt

– Backwardation points to greater supply seen ahead

Toluene’s March premium to Eurobob gasoline was assessed stable at $170/mt and April was assessed stable at $165/mt. The backwardation reflected market talk of greater availability in April. Two European production plants are still closed but a lack of spot demand has allowed material to accumulate nonetheless. A trader said demand was relatively strong on Tuesday and that toluene supplies were no longer very tight. On Tuesday, European prices dipped below US numbers for the first time since January for relevant arrival dates, though the arbitrage window remained shut. Toluene was assessed at $719.25/mt CIF ARA on Tuesday. In the US, April was assessed at $726.56/mt FOB. The relevant freight route was last assessed at $36.50/mt on Tuesday.

RATIONALE:

S&P Global  assessed the CIF ARA toluene premium over Eurobob gasoline at $170/mt for March on Tuesday, stable from Tuesday. During the  Market on Close assessment process, Litasco sold 1,000 mt of TDI grade toluene to Total for pricing March 5-31, delivery March 11-21 at a premium of $170/mt over the Eurobob gasoline March swap. The April premium was assessed stable at $165/mt, with no disproving indications.

pexels-photo-261706-min
pexels-photo-261706-min

Asian isomer-grade mixed xylenes rose

– Naphtha rallies $15/mt

– PX jumps $7.42/mt

Asian isomer-grade mixed xylenes rose from Tuesday by $2/mt to $694/mt FOB Korea and at $708/mt CFR Taiwan on Tuesday, tracking rising prices in related markets. A trade source said market participants were still eying exports to the US amid recent price rises there. However, the Asian MX market was quiet Tuesday. In related markets, April ICE Brent crude oil futures rose $1.95/b to $66.78/b at 0830 GMT in Asian trade, while naphtha jumped $15.25/mt to $535.25/mt CFR Japan. Asian paraxylene also increased by $7.42/mt to $1,113.42/mt CFR Taiwan/China.

RATIONALE:

Isomer-MX was assessed up from Tuesday by $2/mt at $694/mt FOB Korea and at $708/mt CFR Taiwan on Tuesday. The markers take the average of the third and fourth half-month laycans, currently H1 March and H2 March. No bids or offers were registered during the   Market on Close assessment process or heard during the day. The two markers were pegged and assessed up $2/mt based on movements in related markets. The above rationale applies to the following market data codes: PHAUV00 for FOB Korea and PHAUT00 for CFR Taiwan.

post-banner-01
post-banner-01

Asian Toluene: Rises $11/mt on thin trading

– Domestic East China ex-tank price rises

– Stable downstream TDI market in East China

Asian toluene rose $11/mt from Tuesday to be assessed at $605/mt FOB Korea and $636/mt CFR China, largely tracking the East China marker amid thin trading. Before the   Market on Close assessment process Tuesday, a bid for a 2,000-mt cargo was heard at $630/mt CFR China for any March delivery, with a bid and offer for a 2,000-mt second-half March loading cargo also heard at $605/mt FOB Korea and $622/mt FOB Korea, respectively. No bids or offers were seen during the   Market on Close Tuesday, despite the surge in upstream crude over the weekend, as participants stayed on the sidelines keeping a watch on prices. Price discussions for ex-tank prompt cargoes in the domestic East China market were heard at the Yuan 5,000/mt-Yuan 5,080/mt range earlier during the day, and rose to Yuan 5,060/mt-Yuan 5,070/mt towards the end of the day. The East China marker was assessed at Yuan 5,065/mt, converting to an import parity of about $632/mt Tuesday. Meanwhile, toluene end-users in China were mostly heard to have returned to the market on Tuesday. Downstream toluene di-isocyanate, also known as TDI, was heard traded at about Yuan 14,000/mt on Tuesday in East China. “The TDI market has been stable since after the Chinese New Year holidays,” a toluene end-user said Tuesday.

RATIONALE:

The FOB Korea toluene marker was assessed at $605/mt FOB Korea Tuesday, up $11/mt from Tuesday, largely tracking the CFR China marker amid thin trading. The marker takes the average of the third and fourth half-month laycans, currently H2 March and H1 April. The CFR China marker was assessed at $636/mt Tuesday, also up $11/mt on the day, tracking the domestic East China marker. No transparent bids or offers were seen during the   MOC process. The H1 March and H2 March laycans were assessed at $636/mt CFR China Tuesday, maintaining a flat market structure from Tuesday.

growth-3
growth-3

Asian phenol and acetone prices rose this week, supported by bullish sentiment in China

Asian phenol and acetone prices rose this week, supported by bullish sentiment in China as markets reopened after the Lunar New Year holidays and tight supply in India. Upstream benzene was assessed down $3.67/mt from Friday last week at $596.33/mt Friday, while propylene, another feedstock, was assessed up $10/mt over the same period at $925/mt FOB Korea.

PHENOL: CFR India phenol was assessed up $50/mt from Friday last week at $1,250/mt Friday amid plant issues in the Middle East, which left supply tight in South Asia. India’s domestic phenol market rose to Rupees 111/kg last week before paring back to Rupees 104/kg this week, market sources said. Multiple trades were heard concluded at $1,250/mt CFR India, equating to Rupees 100/kg. Several market participants were expecting sentiment to weaken going forward, saying prices had recently risen too much too fast. On the other hand, keen buyers were still heard in the market, with one buyer saying there were no ready sellers at $1,300/mt CFR India. Nonetheless, March material was still heard available and tradable indications continued to hover at $1,250/mt CFR India. East China domestic discussions supported the price of import material to China, with East China prices heard up Yuan 125/mt from Friday last week at Yuan 8,500/mt Friday, as sentiment was firm after the Lunar New Year holidays. However, the restart of a major phenol producer in China in January contributed to expectations of growing supply, as commercial sales from the plant should begin soon, sources said. Downstream products such as caprolactam and bisphenol-A were heard unable to support further increases in feedstock phenol prices, resulting in thin spot demand.

ACETONE: Despite thin trading in acetone delivered in Asia, market sources said prices had risen $10-$20/mt recently as producers were keen to seize on an open arbitrage between Asia and the US and Europe. Shipping sources said 5,000 mt of acetone was quoted from Yeosu in South Korea to Houston, while 2,000 mt was heard shipped from Singapore to Rotterdam at a rate of $95/mt. FOB Rotterdam acetone prices stood at $570/mt last Friday. This resulted in a pickup in demand for Asian material, and CFR China prices were assessed up $15/mt from Friday last week at $460/mt Friday, while CFR India was assessed up $5/mt over the same period at $505/mt.