Market and product
Asian benzene falls on concerns over Greece
Asian benzene prices fell $51.50/mt or 4.4% day on day May 14 to $1,123.50/mtFOB Korea, as traders remained concerned over ongoing political uncertaintyin Greece. "Macroeconomic sentiment is very weak at the moment because ofGreece, and that has wiped off the positive effect of China's reserve ratecut of 0.5% announced on Sunday," a South Korean trader said.
Front month ICE Brent crude futures fell $0.89/barrel or 0.8% day on day to$110.87/b at 4:30 pm Singapore time (0830 GMT) May 14. Justin Harper, head ofresearch at IG Markets Singapore, said talk of another round of Greekelections "is likely to lead to some cautious trading sessions this week.Benzene activity in the Asian trading day was focused on July and Augustcargoes.
August was traded at $1,115/mt FOB Korea from Kyetong to GS Global and Julytraded at $1,100/mt FOB Korea from an undisclosed party to Interchem. In theUS, benzene fell May 11 to $1,210.95/mt FOB USG. European benzene lowered to$1,237/mt CIF ARA.
Toluene
The FOB Korea toluene marker was assessed at $1,135/mt May 14, down $27/mt or2.3% from May 11 amid weakness across the aromatics markets. Toluenediscussions kicked off around $10/mt lower the morning of May 14 than May11's settlement, and fell further as the day progressed.
At latest prices, the FOB US Gulf-FOB Korea spread stands at $99.24/mt,widening $27/mt from May 11. Freight to move a 10,000 mt cargo of toluenefrom South Korea to the US Gulf was assessed at $49-51/mt May 14, unchangedfrom May 11. US toluene was stable May 11 at $1,234.24/mt FOB USG. Europeantoluene was assessed flat May 11 at $1,203/mt FOB R'dam.
isomer-grade mixed xylene
Asian isomer-grade mixed xylene prices plunged for the fifth consecutivetrading day May 14, with the FOB Korea benchmark assessed at $1,152.50/mt,down $25/mt or 2.1% from May 11.
"I am concerned about the [eurozone] debt crisis and also the economicrecovery in the US," a South Korean trader said. "Cotton stockpiles are veryhigh; this can bring down the downstream markets and indirectly bring downisomer-MX," a second trader said.
A late May 11 deal that saw Marubeni sell a June cargo to GS Caltex at$1,180/mt FOB Korea shocked many in the Asian market. "Everyone in the marketwas surprised that the seller offloaded at this price level," a trader said,adding that most June cargoes still available in the spot market werehigh-cost cargoes rolled over from May.
Industry sources said most end-users have completed June cargo purchases andtraders were currently looking to swap June cargoes for July ones. In the US,MX prices held firm at $1,218.06/mt FOB US Gulf May 11.
styrene monomer
Asian H2 June styrene monomer prices tumbled $25/mt day on day May 14 to$1,407/mt FOB Korea, deflated by a weak market outlook into July and possiblybeyond, and flipping the forward curve into backwardation.
In plant news, South Korea's Honam Petrochemical restarted its 500,000mt/year SM plant at Daesan May 13 and is already running it at 60-70% ofcapacity, a company source said May 14. "On-spec product has been made sincedaybreak today," the source said, adding that the run rate will be graduallyincreased, although the target run rate was not disclosed.
In Japan, NS Styrene Monomer plans to restart its 230,000 mt/year No. 3 SMplant at Oita May 15 following an extended shutdown after the plant completedmaintenance, a source close to the company said May 14.
The SM plant was shut early March and not restarted after turnaround due to adisruption in ethylene feedstock supply from Showa Denko. European styrenefor June was at $1,455/mt FOB R'dam May 11. US styrene was at $1,441.80/mtFOB USG May 11.
Front month ICE Brent crude futures fell $0.89/barrel or 0.8% day on day to$110.87/b at 4:30 pm Singapore time (0830 GMT) May 14. Justin Harper, head ofresearch at IG Markets Singapore, said talk of another round of Greekelections "is likely to lead to some cautious trading sessions this week.Benzene activity in the Asian trading day was focused on July and Augustcargoes.
August was traded at $1,115/mt FOB Korea from Kyetong to GS Global and Julytraded at $1,100/mt FOB Korea from an undisclosed party to Interchem. In theUS, benzene fell May 11 to $1,210.95/mt FOB USG. European benzene lowered to$1,237/mt CIF ARA.
Toluene
The FOB Korea toluene marker was assessed at $1,135/mt May 14, down $27/mt or2.3% from May 11 amid weakness across the aromatics markets. Toluenediscussions kicked off around $10/mt lower the morning of May 14 than May11's settlement, and fell further as the day progressed.
At latest prices, the FOB US Gulf-FOB Korea spread stands at $99.24/mt,widening $27/mt from May 11. Freight to move a 10,000 mt cargo of toluenefrom South Korea to the US Gulf was assessed at $49-51/mt May 14, unchangedfrom May 11. US toluene was stable May 11 at $1,234.24/mt FOB USG. Europeantoluene was assessed flat May 11 at $1,203/mt FOB R'dam.
isomer-grade mixed xylene
Asian isomer-grade mixed xylene prices plunged for the fifth consecutivetrading day May 14, with the FOB Korea benchmark assessed at $1,152.50/mt,down $25/mt or 2.1% from May 11.
"I am concerned about the [eurozone] debt crisis and also the economicrecovery in the US," a South Korean trader said. "Cotton stockpiles are veryhigh; this can bring down the downstream markets and indirectly bring downisomer-MX," a second trader said.
A late May 11 deal that saw Marubeni sell a June cargo to GS Caltex at$1,180/mt FOB Korea shocked many in the Asian market. "Everyone in the marketwas surprised that the seller offloaded at this price level," a trader said,adding that most June cargoes still available in the spot market werehigh-cost cargoes rolled over from May.
Industry sources said most end-users have completed June cargo purchases andtraders were currently looking to swap June cargoes for July ones. In the US,MX prices held firm at $1,218.06/mt FOB US Gulf May 11.
styrene monomer
Asian H2 June styrene monomer prices tumbled $25/mt day on day May 14 to$1,407/mt FOB Korea, deflated by a weak market outlook into July and possiblybeyond, and flipping the forward curve into backwardation.
In plant news, South Korea's Honam Petrochemical restarted its 500,000mt/year SM plant at Daesan May 13 and is already running it at 60-70% ofcapacity, a company source said May 14. "On-spec product has been made sincedaybreak today," the source said, adding that the run rate will be graduallyincreased, although the target run rate was not disclosed.
In Japan, NS Styrene Monomer plans to restart its 230,000 mt/year No. 3 SMplant at Oita May 15 following an extended shutdown after the plant completedmaintenance, a source close to the company said May 14.
The SM plant was shut early March and not restarted after turnaround due to adisruption in ethylene feedstock supply from Showa Denko. European styrenefor June was at $1,455/mt FOB R'dam May 11. US styrene was at $1,441.80/mtFOB USG May 11.
Source:http://www.platts.com
