NWE Xylenes – MX market stable as activity thins

phenol price updates

– Further OX imports expected

– Activity stagnant in PX market

Demand for mixed xylenes remained low Friday, with selling interest also heard to be disappearing. On the whole, mixed xylenes seemed out of favor in Europe, in part due to a weak downstream paraxylene market. Global supply length in the paraxylene market was thinning spot trade in Europe, with buyers unwilling to commit and sellers assessing their options. The lack of demand seen in Europe recently was being led by Asian spot market activity, where no bids were seen in the Market on Close process Friday, with offers instead pushing spot pricing down. Europe was stable, now at a $118/mt discount to CFR Taiwan/China H1 and H2 July laycans, for FOB ARA May and June assessments. In the orthoxylene market, more imports were expected, according to a trader, helping to balance the market but also suggesting the European supply issues may continue through the coming months. Pricing was stable on the day at $1,150/mt FOB ARA.

RATIONALE:

S&P Global assessed M1 May and M2 June mixed xylenes CIF ARA premiums over Eurobob gasoline stable on the day at $100/mt, in line with a trader indication. May Northwest European paraxylene was stable at $820/mt FOB ARA, amid 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 FOB ARA, in line with a trader indication.

 

Chemical Industry
Chemical Industry

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