CFR China, CFR SEA stable, FOB Korea down $10/mt
Sinopec settles April OX CP at Yuan 6,719/mt
Chemical Industry news – Asia orthoxylene was assessed stable to lower Friday. CFR China and CFR Southeast Asia was assessed unchanged from last Friday at $920/mt and $1,020/mt respectively, while FOB Korea was assessed down $10/mt over the same period at $1,010/mt. The fall in FOB Korea OX comes amid weakness in the isomer-mixed xylenes Chemical Industry, which is a feedstock for OX. FOB Korea isomer-MX was assessed down $13/ mt on the day at $723/mt Friday. State-owned China Petroleum and Chemical Corp., or Sinopec, settled its April orthoxylene contract price at Yuan 6,719/mt on an ex-tank basis, equating to about $867.41/mt on an import-parity basis, sources close to the matter said Friday. This was down Yuan 81/mt from its March settlement of Yuan 6,800/ mt. With domestic East China Chemical Industry OX prices significantly lower than that of import OX, demand for CFR China OX continued to be heard lackluster. The CFR China-domestic East China import parity spread for OX stood at $69.24/mt Friday. In other news, China’s Fuhaichuang Petroleum and Petrochemical, formerly known as Dragon Aromatics, will delay the planned two-week turnaround at its No. 1 aromatics unit in Gulei, a source close to the company said Friday. The No. 1 aromatics unit was originally slated to go on a turnaround on May 11, but this has been delayed to June, with the exact timeline still being decided, he added. The plant operates two aromatics lines, each of which has a nameplate capacity of 200,000 mt/year of orthoxylene. In downstream Chemical Industry, South Korea’s Aekyung Petrochemical plans to shut its 210,000 mt/ year phthalic anhydride plant in Ulsan on June 3, about four weeks later than the earlier target date of May 7, for a month of scheduled maintenance, a company source said. The delay comes amid supply tightness in the PA Chemical Industry, the source said.
Asian OX was stable to lower from last Friday, assessed at $1,010/ mt FOB Korea, $920/mt CFR China and $1,020/mt CFR Southeast Asian Chemical Industry Friday. CFR China was assessed flat at the peg of $920/mt, considering the domestic price parity level in East China in the absence of spot trades at around $850-$860/mt CFR, and above a buy indication heard at $910/mt CFR. FOB Korea was assessed down $10/mt from last Friday at $1,010/mt, based on tradable indications heard at $1,020- $1,050/mt FOB, and also tracking the fall in feedstock FOB Korea isomer-grade mixed xylene Chemical Industry, which fell $13/mt day on day to $723/mt Friday. Southeast Asia was assessed at $1,020/mt, unchanged from last Friday, based on a tradable indication heard at $950-$1,050/mt CFR SE Asia, and above buying indications heard at $950/mt (Chemical Industry).