– OX premium over PX expected to last till summer
– European PX supply long; still demand from China
The European mixed xylene market maintained the quietness of the week Monday, with sources saying they thought trading would pick up next week. “We have had nothing at all this week,” a source said. Premiums to Eurobob gasoline were stable at $110/mt CIF ARA for May and June. MX premiums have fallen $5 on the week. In the paraxylene market, there was still “nobody buying in Europe,” a source said. Another added that very few cargoes were moving, and mostly to China. However, Chinese buyers “are asking for big discounts,” a trader said, due to oversupply in Asia and quality differences for non-Asian-origin paraxylene. The May and June FOB ARA discount to CFR Taiwan/China H2 June and H1 July was calculated at $114/mt and $105/mt respectively. H2 June and H1 July laycans are used to account for transit times. Supply in Europe was heard to be particularly high, with market sources reporting some producers’ storage tanks being full. On the week, European paraxylene pricing was stable because of the lack of trading. In the orthoxylene market, spot pricing was stable on the day at $1,150/mt FOB ARA, supported by continued tightness. A market source said spot orthoxylene pricing at a significant premium to paraxylene could continue “for a few more months” until European production returned to full operating rates.
S&P Global assessed M1 May and M2 June mixed xylene CIF ARA premiums to Eurobob gasoline stable on the day at $110/mt on no disproving indications. May Northwest European paraxylene was stable at $840/mt FOB ARA, in line with a trader indication that discounts to Asia were seen above $100/mt, and in thin trading. The CFR Taiwan/China H2 June assessment closed at $954/mt on Monday. June was stable at $840/mt FOB ARA, maintaining parity with May. The paraxylene 5-30 day forward spot price was assessed as the average of the period at $840/mt FOB ARA, stable on the day. Orthoxylene was assessed at $1,150/mt FOB ARA, in line with a trader indication at mid-$1,100s/mt.