– Tight supply complicates OX CP negotiations
– PX spot trade quiet from Europe
European mixed xylene premiums to Eurobob gasoline were steady from Tuesday at $150/mt CIF ARA March and $143/mt CIF ARA April, with a lack of spot activity continuing into this week. The backwardated structure in the premiums was stable at $7/mt, with lengthening supply expected in April due to fewer exports from the region, sources said. Attention in the European market was instead focused on the orthoxylene market, where some sources expect the market to remain tight until the summer. Bidding was centered on Asian-origin material, with European market participants reportedly bidding for around 6,000mt. They had, however, to compete with buyers in Southeast Asia, where an increase in demand from the phthalic anhydride market has supported prices in Asia. European spot prices were stable from Tuesday at $990/mt FOB ARA. The tight supply was complicating contract price negotiations, sources said. Expectations were for an increase to Eur865-Eur880/mt, up from Eur825/mt in February. European paraxylene spot trade remained lackluster, with India and Asia sourcing most of their material from Russia, sources said. Spot prices in Europe followed the Asian market $2.25/mt higher to $1,016/mt FOB ARA March and April. For European exporters looking at sending cargoes to Asia, the backwardated structure seen on CFR Taiwan/China pricing added further barriers. Laycans for May, when European cargoes would arrive, were assessed at a $4/mt discount to April laycans on Tuesday.
S&P Global assessed the March CIF ARA mixed xylene premium to Eurobob gasoline at $150/mt, stable from Tuesday, amid no disproving indications. April was assessed at $143/mt CIF ARA, maintaining its structure to March from Tuesday. March paraxylene was assessed at $1,016/mt FOB ARA, up $2.25/mt, tracking movements in the CFR Taiwan/China H1 May laycan. April was also assessed at $1,016/mt FOB ARA, up $2.25/mt, tracking movements in the CFR Taiwan/China H2 May laycan. Orthoxylene was assessed stable at $990/mt FOB ARA, amid no disproving indications.