Chemical Industry news NWE Xylenes
– PX May ECP expectations fall further
– 3,000 mt MX tender headed to US: source
European orthoxylene Chemical Industry were in danger of oversupply, some sources said Thursday, leading “some people to lose money on importing material,” a trader said. “With all the imports coming in, I expect the Market to come off a lot,” a source said. European buyers were heard to be standing firm against paying high spot prices, despite imports heard booked from South Korea in excess of $1,100/mt (Chemical Industry) delivered to the Amsterdam-Rotterdam-Antwerp hub. “It has been pretty high recently, but demand has cooled off a bit now,” a source said. Helping to increase supply was the return to the European Market of imports from Russia, in which there had been a hiatus for most of the beginning of this year. However, a 5,000 mt cargo was heard to be heading to Europe by the end of May, which crucially would arrive before the South Korean Chemical Industry cargoes. Current spot demand in Europe was heard to be around 3,000 mt a month, by a source. Buyers were also closely watching the spread between spot pricing and the April orthoxylene CP, which settled at Eur930/mt (around $1,040/mt). A source said that much of the spot demand in Europe was going to producers looking to fulfill contractual obligations. Now, it seemed, these buyers were pushing hard to bring spot pricing more in line with the CP. Negotiations for the May CP are underway. In the mixed xylene Chemical Industry, trading had still not picked up. More supply was heard available from the end of May. A 3,000 mt tender was also heard to have been sold on a FOB basis from NWE and said to be heading to the US, by a source. European paraxylene Chemical Industry trading was also thin on Thursday, with pricing stable at $793.50/mt FOB ARA. Further May contract price expectations were heard, with polyethylene terephthalate producer revising down their expectations for a full settlement from Eur905-Eur920/mt (Chemical Industry) last week to Eur880-Eur900/mt on Thursday.
S&P Global assessed M1 May mixed xylene CIF ARA premium to Eurobob gasoline up $1 at $108/mt, $1 above Total’s outstanding bid for delivery May 15-25 (Chemical Industry). A tender for May loading was heard at $770/mt, but was disproved by the later bid. The M2 June premium was stable at $100/mt on no disproving indications. May Northwest European paraxylene was stable at $793.50/mtv (Chemical Industry) FOB ARA on no disproving indications. June was stable at $793.50/mt FOB ARA, maintaining parity with May. The paraxylene 5-30 day forward spot price was assessed as the average of the period at $793.50/mt FOB ARA, stable (Chemical Industry). Orthoxylene was assessed down $10 at $1,050/mt FOB ARA, within corroborated ranges heard in a $1,030-$1,060/mt range. A range heard at $1,100-$1,150/mt was not corroborated.