วันพุธที่ 16 พฤศจิกายน พ.ศ. 2554

US Morning Market Analysis: Aromatics prices fall overnight


Asian benzene prices fell $8/mt day on day November 15 to be assessed at $980/mt FOB Korea following a drop in US prices on November 14. The US benzene price on November 14 was assessed at $917.90/mt FOB USG.
Arbitrage opportunities for Asian cargo to the US continue to remain closed, but a reverse arbitrage situation is looking closer to reality with the slip in the November 15 Asian benzene price being comparably smaller than the plunge in the US. South Korea exported 99,430 mt of benzene in October, down 22.4% month on month and 17.4% year on year, latest Korea Customs Service data showed November 15.
Exports to the US declined 58.1% month on month and 47% year on year to 23,613 mt due to the closed arbitrage to the US and Asia being the most expensive region globally for benzene in the month. In Europe November 14 the benzene price was assessed at $920.50/mt CIF ARA. (See chart 1)
Asian toluene on an FOB Korea basis was assessed at $1,102.50/mt November 15 down $27/mt from the day before, amid declines in upstream energy. December ICE Brent traded at $113.13/barrel at 4:30 pm Singapore time (0830 GMT), down $1.32/b day on day.
The Asian price remained at a sharp premium to the US toluene price, which was assessed November 14 at $1,021/mt FOB USG. The European toluene price was assessed Monday at $1,082/mt FOB Rdam. (See chart 2)
Asian isomer-grade mixed xylenes closed November 15 at $1,189.50/mt FOB Korea and $1,199.50/mt CFR Taiwan, down $15/mt and $13/mt, respectively, on the back of weaker crude and equity markets. In the US, the mixed xylene price on November 14 was assessed at $1,036/mt FOB USG. (See chart 3)
Vessel space on  the US-Asian shipping route remained tight, with US-South Korea freight rates heard in the range of $80-$85/mt and US-China freight rates at $80-$100/mt. "[There is] no space and it is not a matter of price," a South Korean trader said.
Asian paraxylene fell $13/day on day November 15 to settle at $1,432/mt CFR Taiwan/China despite buyers being out in force seeking cargoes. Downstream purified terephthalic acid slipped $4/mt over the same period to close at $1,068/mt CFR China for Taiwan origin cargoes.
With more PTA plants cutting operating rates or shutting down in December, as well as around 30,000 mt of deep-sea PX arriving in late December, supply could ease a little, sources said. In production news, China's Sinopec Zhenhai Refining & Chemical Company, or ZRCC, has lowered its paraxylene operating rate to 60% in November due to technical problems with the plant, a company source said November 15.
The US paraxylene price was assessed at $1,332.50/mt FOB USG. The European paraxylene price was assessed at $1,345/mt FOB USG. (See chart 4)
Asian styrene monomer for H1 December was assessed down $5/mt day on day November 15 to $1,311/mt FOB Korea tracking lower energy prices and overall weaker sentiment as global economic concerns ticked up again. The market appeared quiet November 15; sources said sellers were holding their offers at similar levels to November 14 but buyers were not active in the market.
Surging European SM prices could attract some cargoes from Asia, a trader said, but it was not confirmed that any shipment deals had been done. However, sources were concerned that only the prompt European market was firm enough to digest any arbitrage cargoes. The European market is in a $110/mt backwardation from November to December, with November assessed at $1,520/mt FOB Korea and December at $1,410/mt FOB Korea November 14. The US styrene price was assessed at $1,227/mt FOB USG Monday. (See chart 5)
All of the charts featured were built on Platts on the Net. The formulas we use are estimates to illustrate industry-wide trends. Subscribers to Platts on the Net can modify the formulas to better reflect their own assumptions. If you are a Platts on the Net subscriber, and would like access to these charts or the formulas used to build them, or for more information about Platts on the Net, please contact Jim Foster at

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