The premium of US Gulf Coast spot mixed xylene to the blend value was calculated Friday by Platts at 50.56 cents/gallon, the highest premium since late March. Mixed xylene was assessed at 430 cents/gallon FOB USG for August that day, the highest price since May 10.
The premium to the blend value has been on a general upward trend starting from July 20, when it was at 12.32 cents/gallon.
Sources said the high premium to the blend value is a good indicator of mixed xylene's strength in the current marketplace. A trader said that the blend value typically acts as a price floor for spot values.
By mid-morning Monday, there were only August bids at 425 cents/gallon FOB USG against no offers. A broker said he had heard of bids rising to the 430 cents/gallon FOB USG level.
The strength in mixed xylene lately has been attributed to market tightness and a stronger Asian market.
ExxonMobil is undergoing a turnaround at their facility in Baytown, Texas, with a mixed xylene production capacity of 17,900 barrels/day, until mid-September.
Sources said Shell is to experience their own turnaround in September for three weeks at their facility in Deer Park, Texas, which has a mixed xylene production capacity of 4,900 barrels/day, adding to tightness in the market.
Mixed xylene in Asia was assessed Monday at $1,353.50/mt FOB Korea and $1,368.50/mt CFR Taiwan, up $25/mt and $30/mt, respectively. Sources in the region said a firmer upstream energy complex was said to be the cause for higher mixed xylene prices, as front-month ICE Brent crude futures were up $1.94/barrel to $118.82/barrel while naphtha was up $14.50/mt to $998.38/mt CFR Japan.
