The following is a list of deals heard during the week, in chronological order:
$1,550/tonne CFR Taiwan and/or CMP, September
$1,555/tonne CFR Taiwan and/or CMP, September
$1,565/tonne CFR Taiwan and/or CMP, September
$1,565/tonne CFR Taiwan and/or CMP, September
$1,565/tonne CFR Ningbo, September **
$1,565/tonne CFR Ningbo, September **
$1,565/tonne CFR Ningbo, September **
$1,580/tonne CFR Taiwan, H2 August, open origin
$1,570/tonne CFR Taiwan and/or CMP, September
$1,558/tonne CFR Ningbo, September **
$1,560/tonne CFR Ningbo, September **
$1,580/tonne CFR Taiwan and/or CMP, September (unconfirmed)
** An end-user was involved in this deal
Note: All cargoes are 5,000 tonnes and of Asian origin unless otherwise stated
Asia PX as supply for September tightens, PTA margins under pressure
Paraxylene (PX) prices in Asia continued to firm for the week ended Friday as supply for September deliveries was increasingly seen tight because of a delay in the restart of CNOOC-Kings Group’s Huizhou PX unit.
An official from the Chinese aromatics producer told ICIS the company is now eyeing a mid-August restart for the 840,000 tonne/year, a delay of two weeks from its initial target of end-July. The official did not provide a reason for the delay in restart. Some market sources said the new target to restart production was “too optimistic” and were instead projecting a restart by end-August.
Production at the Huizhou site was halted on 11 July after a fire broke out at the refinery complex.
China’s Yisheng Petrochemicals was heard re-selling PX cargoes for September delivery during the week in a response to squeezed PTA margins. The Chinese PTA maker was heard to have sold at least 25,000 tonnes of September deliveries at $1,558-1,565/tonne CFR Ningbo during the week.
The Chinese PTA major has resold a total of 45,000 tonnes of September PX over the past two weeks and will be shutting its 650,000 tonne/year PTA unit in Ningbo for one month due to thinning margins.
A slew of upcoming turnarounds at regional PX facilities is expected to keep the demand-supply balance for September tight, according to market sources.
Esso Thailand is heard to be shutting down its 500,000 tonne/year PX unit in Sri Racha for a 55-day maintenance in mid-September but this could not be confirmed. The company was also heard planning to deliver only two domestic cargoes during the maintenance period. Esso Thailand usually delivers 8-9 PX cargoes in the domestic Thai market monthly according to sources.
JX Nippon Oil & Energy will take its Mizushima-based units with a combined nameplate capacity to produce 450,000 tonnes of PX per annum for a 40-50 days maintenance in September. Both the Mizushima units were heard running at reduced rates following a fire that broke out at its refinery complex early last week.
The August/September inter-month swap was negotiated in a wide range during the week. Buying indications were mentioned in a $7/tonne backwardation against offers as wide as a $30/tonne backwardation. Valuations for the inter-month spread was placed around $13-15/tonne by traders on 29 July but no transactions were heard.
Some buying indications for September deliveries were mentioned at premiums not exceeding $5/tonne to 50% Asia Contract Price (ACP): 50% spot average of published CFR Taiwan prices. Offers were however pitched around premiums of $13-15/tonne to published prices.
Contract:
A major settlement for the August PX 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 contract price for July.
ExxonMobil remained in negotiations with its customers at the time of writing.
The July PX ACP was settled at $1,400/tonne CFR Asia.
Sinopec has settled its July PX contract price at yuan (CNY) 11,150/tonne DEL or $1,448.53/tonne on an import-parity basis. The Chinese aromatics major will list a August PX contract price early next week.
Sinopec settled its June PX contract price at CNY11,500/tonne DEL or $1,494/tonne on an import-parity basis.
ACP settlements for 2011:
All prices quoted are on a per tonne CFR Asia basis and in US dollars. January: $1,380; February: $1,620; March: $1,655; April: $1,690; May: $1,605; June: $1,500; July: $1,400; August: $1,540
Contract prices finalised in the Chinese domestic market for 2011. All prices quoted are on a per tonne DEL China basis and in yuan (CNY). January: CNY11,700; February: CNY13,050; March: CNY13,500; April: CNY12,900; May: CNY12,250; June: CNY11,500; July: 11,150
The following is a list of deals heard during the week in chronological order:
$1,382/tonne CFR China, 2,000 tonnes, European origin
$1,390/tonne CFR China, 2,000 tonnes, Indian origin
$1,390/tonne CFR China, 2,000 tonnes, Indian origin (unconfirmed)
$1,400/tonne CFR China (unconfirmed)
Asia OX prices jump to near 2-year high amid tight supply, higher feedstock
Prices of OX in Asia jumped another $30-50/tonne for the week ended Friday, a level not seen since August 2008, amid lofty feedstock costs and uncertainties over when CNOOC-Kings Group would be able to restart its 80,000 tonne/year Huizhou unit.
A CNOOC-Kings Group official told ICIS the company was now eyeing a mid-August restart in production but some traders said the target was “too optimistic” and are expecting the Chinese major maker to resume operations in end-August.
A fire that broke out at the company refinery complex on 11 July has forced the shutdown of the aromatics unit.
Meanwhile, the resumption of operations at Fujia Dahua’s 100,000 tonne/year unit has little dampening effect on regional prices as some end-users were heard scrambling for material.
Downstream PA makers continued struggling with squeezed margins and were generally running at reduced rates. PA prices are $35/tonne firmer at the lower end of the range at $1,300-1,345/tonne CFR China. Prices in southeast Asia are assessed $20/tonne higher at $1,300-1,360/tonne CFR.
Spot
Spot OX prices are assessed $30-40/tonne higher in Asia reflecting transactions, bids and offers.
A cargo of European origin was heard sealed mid-week at around $1,382/tonne CFR China. Subsequent bids were heard at $1,395-1,400/tonne CFR China.
Another two cargoes were heard sealed at $1,390/tonne CFR China on 28 July. A third parcel was heard transacted at $1,400/tonne CFR China but this could not be confirmed.
On 22 July, Hyundai Corp was heard placing bids for September shipments at $1,405/tonne CFR China. Selling notions were placed around $1,410-1,420/tonne CFR China but no further transactions were heard by 17.30 hours Singapore time.
Chinese domestic OX cargoes were heard traded yuan (CNY) 200/tonne higher than the previous week at CNY10,600-10,700/tonne ex-tank or $1,379.22-1,392.23/tonne on an import parity basis.
Tank inventories at Zhangjiagang were marginally higher than last week at 20,000 tonnes.
Chinese major Sinopec maintained its list price at CNY10,200-10,300/tonne or $1,327.17-1,340.19/tonne on an import parity basis. However Sinopec officials said that they were eyeing a CNY300/tonne increase next week.
($1 = CNY 6.44)
This week in ICIS news ( Error! Hyperlink reference not valid.
27 Jul 11 10:43 S Korea's KPX shuts TDI units on soft market fundamentals
27 Jul 11 10:18 Methanex increases August methanol APCP by $50/tonne
27 Jul 11 08:52 Thailand’s PTTCH eyes propane dehydrogenation unit restart at end July
26 Jul 11 10:23 Japan’s ISK announces JPY50/kg TiO2 price increase from 1 October
26 Jul 11 10:16 Asia petrochemical exports to take hit if US defaults on debt
