August ACP settlement likely to impact US PX
Participants in the US paraxylene (PX) market were looking toward Asia in the week ended 29 July, as a major settlement for the August PX Asia Contract Price (ACP) was heard at $1,540/tonne CFR Asia.
JX Nippon Oil and Energy, Idemitsu Kosan and S-Oil were heard to have settled the August ACP $140/tonne higher than the July ACP of $1,400/tonne CFR Asia. ExxonMobil remained in negotiations with its customers. Major PX makers had previously targeted a $200–280/tonne increase for the August ACP.
The US PX contract price is heavily influenced by the ACP. Since early 2010, the US price has tracked the ACP to within $50/tonne. The US PTA contract price is formula-linked to the PX price.
Earlier this month, ExxonMobil Chemical shut down its Baytown PX unit in southeast Texas for a two-month planned maintenance turnaround. The 600,000 tonne/year PX plant is the third-largest in the US. ExxonMobil Chemical also operates a 300,000 tonne/year PX facility in Beaumont, Texas.
PX prices in Asia continued to firm as supply for September deliveries was increasingly tight because of a delay in the restart of CNOOC-Kings Group’s Huizhou PX unit in China, which shut on 11 July after a fire broke out at the complex. An official from the Chinese aromatics producer told ICIS the company is now eyeing a mid-August restart for the 840,000 tonne/year unit. A slew of upcoming turnarounds at regional PX facilities is expected to keep the demand-supply balance for September tight.
OX market waits for August MX contract settlement
Participants in the US orthoxylene (OX) market were waiting for the settlement of the August mixed xylene (MX) contract in the week ended 29 July.
The MX contract is the primary influence on the monthly OX contract. A 2 cent/gal fall in the July MX contract prompted a 2.5 cent/lb decrease in the July OX contract.
Last week, the August OX contract price was nominated 10.50 cents/lb higher than the July contract price. The OX contract price is usually settled in the first half of the month to which it applies.
A buyer acknowledged that the August price could increase, based on higher mixed xylene (MX) costs, but expressed strong doubts that it would be as high as 70 cents/lb FOB.
Asian OX prices reached a level not seen since August 2008 amid high feedstock costs and uncertainties over when CNOOC-Kings Group would be able to restart its 80,000 tonne/year Huizhou unit. Meanwhile, the resumption of operations at Fujia Dahua’s 100,000 tonne/year unit in Dalian has had little dampening effect on regional prices, as some end-users were heard scrambling for material.
US MX spot prices were discussed at $4.25-4.35/gal FOB on 29 July, compared with $4.00-4.10/gal FOB on 22 July.
West Texas Intermediate (WTI) crude futures finished down in response to US economic data showing anemic growth during the first half of the year. The paralysis in Washington with regard to the debt ceiling was also a factor. Posting the first weekly loss in four tries, WTI finished down 4.2%.
NYMEX Front-Month Crude Oil Contract
| Date | 8 July | 15 July | 22 July | 29 July |
| (US$/bbl) | 96.20 | 97.24 | 99.87 | 95.70 |
($1 = €0.70)
This week on ICIS ( www.icis.com ):
28/07/2011 19:45 Indorama removes force majeure on US PET supply
28/07/2011 05:55 Asian PET producers hike August offers on higher feedstock costs
27/07/2011 18:10 Europe June PTA prices decrease in line with upstream PX
27/07/2011 08:13 Taiwan's Formosa restart plans may get delayed by fire
27/07/2011 00:48 South America August PET prices expected to roll over
