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Petrochemicals: Apr 8-12: PX strengthens due to facility troubles

2019/04/15 07:00

Aromatics

FOB Korea benzene prices moved in a narrow range. As current prices were much higher than those in late March, the market was seen to have hit the peak. But prices were not likely to decrease since an explosion and a fire occurred at the No.3 aromatics facility owned by Taiwan’s Formosa Chemicals & Fiber Corporation (FCFC) on Apr 7. PX prices moved up due to the accident at FCFC. In addition, there was a strong tendency that prices for prompt cargoes were higher than distant cargoes.

 

Olefins

In the ethylene market in Northeast Asia, activity was generally thin. Players focused on discussions for April delivery as there were still available cargoes. Under this situation, sources saw that discussions for May delivery was still not at full swing. FPCC was seen to sell surplus pygas produced at its naphtha crackers due to an accident that had occurred at an aromatics facility owned by FCFC. On a CFR Northeast Asia basis, deals were reportedly done at $1,010/mt for April delivery and $1,020/mt for May delivery.

 

The Asian market for propylene strengthened across the grade.

In the Northeast Asia market, sellers revised up price ideas in a bullish stance amid reduced availability tied to planned refinery maintenance. Bullish sentiment on the seller side was further boosted by firmer propylene prices in Shandong, China. Meanwhile, end-users failed to demonstrate brisk buying interest in import cargoes amid abundant domestic supplies in China. Such factors trimmed the market's increase.

In the Southeast Asia market, one maker sold one spot cargo for May loading via tender.

 

The Asian market for butadiene weakened across the board.

The Northeast Asia market was gripped by bearish tone amid a combination of slack demand and ample supply. Oversupply sentiment was fueled by offers on Southeast Asian cargoes coupled with an expected inflow of many cargoes supplied from Iran.

Supply-demand fundamentals were loose amid slow digestion of butadiene inventories in China.

 

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Tokyo : Petrochemicals Team  Shinnosuke Tagusari  +81-3-3552-2411
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