Argus DeWitt Toluene and Xylenes Daily

Transcription

1 Argus DeWitt Toluene and Xylenes Daily Highlights Americas US toluene fell for the fourth consecutive session as interest for prompt barrels diminished. US mixed xylenes (MX) prices remained at parity to Monday as interest for prompt delivery remained elusive. Europe Toluene prices firmed slightly on Tuesday. Prompt supply remained limited, disappointing buyers who returned to the market on expectations of improved March availability. Continued declines in Asia and the US kept sentiment bearish in the MX and PX markets. Asia-Pacific Prompt toluene prices edged lower on a weaker economic environment in China. MX prices fell on a poor PX performance, which in turn was affected by weaker Chinese demand. Lower PTA futures prices dragged down spot market values. About Argus DeWitt Argus DeWitt is a leading independent source of pricing data and market intelligence for the aromatics, olefins and related petrochemical markets. Purchasers, business analysts, traders, producers and product managers benefit from Argus DeWitt insight every day. Market Snapshot Americas Timing Midpoint ± Toluene fob HTC Feb 1, , Toluene fob HTC Mar 1, , Mixed xylenes 5211 fob HTC Feb 1, , Mixed xylenes 5211 fob HTC Mar 1, , Mixed xylenes 843 fob HTC Feb 1, , Paraxylene fob USGC Feb 1, , Europe Toluene fob NWE Mar 1, , , Mixed xylenes fob NWE Mar 1, , , Paraxylene fob NWE Mar 1,.00-1, ,.23 Asia-Pacific Low-High ± MTD Toluene fob S Korea marker 1, , Toluene cfr China marker 1, , Mixed xylenes fob S Korea marker 1, , Mixed xylenes cfr Taiwan marker 1, , Paraxylene fob S Korea marker 1, , Paraxylene cfr Taiwan marker 1, , Paraxylene cfr China marker 1, , PTA cfr China Global toluene S/t Global mixed xylenes 1,175 USGC NWE South Korea 1, USGC NWE South Korea 1, 1, 1,125 1, 1, 1, 1,075 1,050 1, Jan 3 Feb 10 Feb 18 Feb 25 Feb 1, Nov 30 Dec 28 Jan 25 Feb

2 Americas Toluene US toluene fell for the fourth consecutive session as interest for prompt barrels diminished. Prices fell 6 Tuesday to 375. Offers opened at the same levels as Monday but sank throughout the day before buyers became willing to place bids. The spread between bids and offers remained wide before narrowing to at the close of the day. TDP and MSTDP economics remain strong despite lower benzene prices; the current benzene premium to toluene is Analysts expect the EIA to report a draw of 1.2mn bl in gasoline stocks Wednesday, and US refinery run rates are expected to fall slightly, according to an Argus DeWitt survey. March prices also weakened as participants remain well supplied. March was discussed at ; a 1.5 contango remains for March delivery. No transactions were reported for either period. Mixed xylenes US mixed xylenes (MX) prices remained at parity to Monday's as interest for prompt deliveries was elusive. Excess supply, weak chemical demand, and poor downstream market conditions are leading MX back into a trough following an earlymonth rally. Currently, conventional gasoline blend value holds a premium, the largest premium since 1 August. Rbob gasoline blend value also holds a significant advantage over MX at The current spread between PX to MX is holding at $23.94/t. March weakened 1 Tuesday to close at 367, as declines Asia futures and pressure on the PX and downstream markets continued to impact US prices. Discussions ranged from No transactions were confirmed. Asia-Pacific deals Date Product Price Size t Delivery 25 Feb Paraxylenes China/Taiwan 1, ,000 2nd 25 Feb Paraxylenes China/Taiwan 1, ,000 2nd Americas prices Toluene fob HTC Feb Toluene fob HTC Mar Mixed xylenes 5211 fob HTC Feb Mixed xylenes 5211 fob HTC Mar Mixed xylenes 843 fob HTC Feb Paraxylene fob USGC /lb Feb Toluene-conv gasoline blend Toluene-Rbob gasoline blend MX-conv gasoline blend MX-Rbob gasoline blend Contract prices Mixed xylenes Feb Paraxylene /lb Jan Related markets Nymex Rbob Mar Nymex WTI $/bl Apr Toluene blend values Conventional blend value Rbob blend value 25 Feb Toluene South Korea 1, ,000 2nd MX, PX premium to gasoline 87M Mixed xylenes blend values Conventional blend value 450 Rbob blend value Toluene fob minus gasoline 87M Mixed xylene 5211 minus gasoline 87M Page 2 of 6

3 Europe Toluene Toluene prices firmed slightly on Tuesday. Prompt supply remained limited, disappointing buyers who returned to the market on expectations of improved March availability. A deal for a 3,000t cargo was heard agreed at $1,/t cif for first half of March delivery. This could not be immediately confirmed. Industry players turned cautious amid the steady weakness in Asia and the US, limiting the European market's upside, and the market saw few bids and offers. The force majeure on toluene supply out of Shell's Godorf site in Germany remains in place. Mixed xylenes Continued declines in Asia and the US kept sentiment bearish in Europe. Interest for export cargoes to the Middle East surfaced, but buying indications of near the $1,050/t-level failed to draw offers. A bid at around the $1,105-1,110/t range continued to be talked about in the market, but it could not be confirmed whether this is a firm commitment from a consumer. Production disruptions in Antwerp remained a supply issue. Paraxylene Discussions for spot PX business Europe were at a standstill as market players observed the sustained falls in the global aromatics markets, particularly China and the rest of Asia. Offers of products that could be bulked up for exports were scant amid production cutbacks. Downstream, Artlant was heard restarting PTA production in Portugal, but with operating rates curtailed by the financial woes of its insolvent key shareholder La Seda de Barcelona. Europe prices Paraxylene premium to naphtha Toluene fob NWE Mar 1, , , Mixed xylenes fob NWE Mar 1, , , Paraxylene fob NWE Mar 1,.00-1, ,.23 Contract prices Toluene Feb 1, , Paraxylene /t Feb Related markets Naphtha 65 para NWE cif Gasoline 95r 10ppm NWE cif Ice Brent $/bl Apr S/t Dec 6 Jan 30 Jan 25 Feb Toluene premium to Eurobob Dec 6 Jan 30 Jan 25 Feb Europe paraxylene premium to mixed xylenes Dec 6 Jan 30 Jan 25 Feb Page 3 of 6

4 Asia-pacific Toluene Prompt toluene prices edged lower on weak market fundamentals and the continuing decline in the Chinese stock market that weighed on sentiment. A cargo for second-half March loading traded at $1,065/t fob South Korea in the late trading session. Bids for Marchloading cargoes were at $1,060/t. Discussions on cargoes for April loading were active throughout the day, with offers at $1,077-1,080/t. Bids fell from $1,075/t levels seen on Tuesday morning to $1,060-1,065/t by late Tuesday afternoon. The bid-offer range for May-loading cargoes was at $1,080-1,088/t. Some participants were cautious about the prevailing high inventories in China and preferred to wait on the market sidelines. South Korean sellers were also holding on to cargoes that were unsold. East China ex-tank prices slipped to 7,700-7,750 yuan/t. Mixed xylenes Isomer xylene prices fell on weaker downstream PX values and limited selling interest. No deals were seen. Bids for March-loading cargoes were at $1,041-1,045/t, while bids for April cargoes were at $1,050-1,055/t. The freight rate from South Korea to east China/ Taiwan for a 3,000t cargo was unchanged at $23/t. Paraxylene PX benchmarks dropped on Tuesday on the back of weak demand and a persistent downtrend seen for PTA derivative contracts on the Zhengzhou commodity exchange. Trading sentiment is depressed because a large Chinabased consumer is likely to have reduced contracted PX volumes up by to 20,000-25,000t for March. It plans to shut PTA capacity during the month, further exacerbating the glut in supplies for the fiber intermediate feedstock. A sole deal for a second-half March shipment was likely done at $1,240/t cfr Taiwan/China. Most other discussions for both March and April cargoes were at $1,235-1,245/t. The March-April intermonth time spread is valued in a $1/t contango. PTA PTA prices continued a downward spiral on Tuesday, because of a weaker futures market and the sluggish economic outlook. Cargoes sold at 6,280-6,290 yuan/t on a delivered basis, down about Yn10/t from Monday. Little liquidity was seen on the cfr China market. Bids were at $ /t that were met with offers at $900/t. China s Xiamen Xianglu Petrochemicals shut its 1.65mn t/yr Asia prices MTD Toluene fob S Korea Mar 1, , Toluene fob S Korea Apr 1, , Toluene fob S Korea May 1, , Toluene fob S Korea marker 1, , Toluene cfr China Mar 1,.00-1, Toluene cfr China Apr 1, , Toluene cfr China marker 1, , Toluene East China dom Yn/t 7, , Toluene India dom ex INR/kg Mixed xylenes fob S Korea Mar 1, , Mixed xylenes fob S Korea Apr 1, , Mixed xylenes fob S Korea marker 1, , Mixed xylenes cfr Taiwan Mar 1, , Mixed xylenes cfr Taiwan Apr 1, , Mixed xylenes cfr Taiwan marker 1, , Paraxylene fob S Korea Mar 1, , Paraxylene fob S Korea Apr 1, , Paraxylene fob S Korea marker 1, , Paraxylene cfr Taiwan Mar 1, , Paraxylene cfr Taiwan Apr 1, , Paraxylene cfr Taiwan marker 1, , Paraxylene cfr China Mar 1, , Paraxylene cfr China Apr 1, , Paraxylene cfr China marker 1, , PTA China domestic Yn/t 6, , PTA cfr China PTA future China Yn/t May 6, Related markets Naphtha Japan c+f Dubai Apr facility in Fujian province on 25 February for a planned threeday maintenance. Page 4 of 6

5 Aromatics news Styron to add reactor at Zhangjiagang latex plant US-based Styron will build a new reactor at its latex plant in Zhangjiagang, China to support growing demand from China s paper and paperboard industry. Styron, based in Berwyn, Pennsylvania, expects the unit to begin operations in the second quarter of The reactor will be the fourth of its kind at Zhangjiagang, approximately km (93 miles) north of Shanghai. The expansion at Zhangjiagang supports Styron s commitment to the latex business and in particular the Asia Pacific region, which is an important growth region for the company, said Marco Levi, Styron s senior vice president of emulsion polymers. Styrolution to shutter US polystyrene plant Styrolution will shut its,000 t/yr polystyrene plant in Indian Orchard, Massachusetts by the end of 2014, citing overcapacity in the north American market. The styrenics supplier will continue to produce polystyrene from its US plants in Decatur and Channahon, Illinois, and at a plant in Altamira, Mexico. "The steps we are taking today align capacities with market needs and support our value approach to standard products like polystyrene said Styrolution Americas president Alexander Glueck. Polystyrene is and will continue to remain a core pillar of our business. Declining US demand for polystyrene is the result of lower production of end-use products, including home electronics and consumer packaging. During the past year, US crystalgrade polystyrene prices rose 10.9pc and high-impact polystyrene prices rose 9.4pc due to higher prices for benzene feedstock. JAC on track for aromatics output by June-July Singapore s Jurong Aromatics (JAC) is targeting to produce aromatics from its new Jurong island plant by June or July. Construction of the plant, which begun in 2011, is expected to be fully completed by March and commissioning will likely to start from April, according to market sources. JAC s aromatics facility has a design capacity to produce up to 800,000 t/yr of paraxylene (PX),,000 t/yr of orthoxylene and 120,000 t/ yr of benzene. PX produced from the plant will be supplied to several JAC stakeholders that include South Korea s SK Global Chemical, China s Jiangsu Sangfangxiang, BP, US marketer Vinmar International and Switzerland-based trading firm Glencore Xstrata, with it likely sold into China the world s largest import market for the fiber intermediate feedstock. JAC is still negotiating with Singapore customs for its petrochemical exports to be tax exempt under the Asean-China free trade agreement, which will provide a 2pc savings for offtakers and eventual consumers. Chinese PX imports from Japan and South Korea are subject to a 2pc import tax. January spot PX prices were at $1,352.26/t cfr China, according to Argus DeWitt data, yielding a tax savings of $27/t for material exported to China. Singapore s PX exports to China last year were 202,594t, according to data from trade organisation IE Singapore. Singapore customs requires a series of recognition criteria for products from companies to qualify for the tax-exempt status, with not all petrochemical exports from the city-state tariff-free. Exports from ExxonMobil s own Jurong island complex are tariff free, while products from another Singapore petrochemical producer PCS are subject to an import tax when shipped to China. Cosmo Oil plans maintenance at MX units Japanese aromatics producer Cosmo Oil has scheduled maintenance at its Chiba and Yokkaichi-based units producing isomer xylene in April and September respectively. The plans are still tentative at both locations, but Cosmo is expected to start a turnaround at the Chiba-based 270,000 t/yr unit from April for about days. It will then restart production around the end of May or in early June. The Yokkaichi unit, producing,000 t/yr of isomer xylene, is due to go offline in September for about 40 days and restart in October. Cosmo s isomer xylene production is largely being shipped to Daesan, South Korea for producing paraxylene at Hyundai Cosmo Petrochemicals units. Paraxylene premium to mixed xylenes PX premium to MX Page 5 of 6

6 PX-toluene, BZ-toluene, MX-toluene spreads PX minus toluene BZ minus toluene MX minus toluene 50 0 Toluene-gasoline blend value Dec 3 Jan 29 Jan 25 Feb 0 4 Dec 3 Jan 29 Jan 25 Feb Toluene premium to cfr Japan naphtha cfr Taiwan paraxylene premium to MX Dec 30 Dec 28 Jan 25 Feb Dec 3 Jan 29 Jan 25 Feb Argus Dewitt Toluene and Xylenes Daily is published by the Argus Media Group Registered office Argus House, 175 St John St, London, EC1V 4LW Tel: Fax: sales@argusmedia.com ISSN: Copyright notice. All rights reserved. All intellectual property rights in this publication and the information published herein are the exclusive property of Argus and/or its licensors and may only be used under licence from Argus. Without limiting the foregoing, by reading this publication you agree that you will not copy or reproduce any part of its contents (including, but not limited to, single prices or any other individual items of data) in any form or for any purpose whatsoever without the prior written consent of Argus. Trademark notice ARGUS, ARGUS MEDIA, ARGUS DEWITT, the ARGUS logo, ARGUS DEWITT TOLUENE AND XYLENES DAILY, other ARGUS publication titles and ARGUS index names are trademarks of Argus Media Inc. Visit for more information. Disclaimer The data and other information published herein (the Data ) are provided on an as is basis. Argus makes no warranties, express or implied, as to the accuracy, adequacy, timeliness, or completeness of the Data or fitness for any particular purpose. Argus shall not be liable for any loss or damage arising from any party s reliance on the Data and disclaims any and all liability related to or arising out of use of the Data to the full extent permissible by law. Publisher Adrian Binks Chief operating officer Neil Bradford Global compliance officer Jeffrey Amos Commercial manager Karen Johnson Editor in chief Ian Bourne Managing editor, Global Cindy Galvin Managing editor, Americas Jim Kennet Editor Amy Strahan Tel: benzenedaily@argusmedia.com Customer support and sales Technical queries technicalsupport@argusmedia.com All other queries support@argusmedia.com Houston, US Tel: New York. US Tel: Washington DC, US Tel: London, UK Tel: Astana, Kazakhstan Tel: Beijing Tel: Dubai Tel: Moscow, Russia Tel: Rio de Janeiro, Brazil Tel: Singapore Tel: Tokyo, Japan Tel: Petrochemicals illuminating the markets