Prompt supply of spot isomer-grade mixed xylenes in Asia pushed the CFR Taiwan H1 July/H2 July physical market structure into a contango Friday, from flat on Thursday, S&P Global Platts data showed. The CFR Taiwan H1 July/H2 July structure was assessed at a contango of $7/mt Friday.
The last time the prompt spread widened to minus $7/mt was on June 2, according to Platts data.
The lack of outlets for H1 July-delivery cargo brought down the CFR Taiwan isomer-MX marker, which fell $32/mt week on week to $682/mt Friday.
On the same day, the FOB Korea marker slid $32/mt week on week -- the largest fall in the aromatics complex that week.
A July-delivery 3,000 mt CFR Taiwan cargo, which was initially bought for H2 June loading on an FOB Korea basis, is due to be loaded over June 26-30 from Yeosu, South Korea, on the vessel Hong Kong Pioneer, said one of the traders familiar with the matter.
Following the FOB Korea purchase by Astra Oil Company, from South Korean producer GS Caltex, the cargo was sold three times through four different trading companies based in South Korea, Singapore and Hong Kong, with the last in the chain being a trading company based in Hong Kong, according to some of the parties involved in the deals.
The cargo was offered on an any July-delivery basis at $695/mt CFR Taiwan then $690/mt on June 14, against no bids.
The offer had coincided with a fall in upstream August ICE Brent crude futures. The cargo continued to be offered June 15, down to $686/mt.
The CFR Taiwan and FOB Korea markers, after the declaration date, take the average of the H2 July and the H1 August laycans.
Following the declaration date of June 15, when the ports and laycans for the next month are declared, the cargo was offered again on June 16 and June 17 on an any-July delivery basis off-screen during the Platts Market on Close assessment process.
On June 16, a South Korean source said another cargo, for H2 July delivery, was sold at $683/mt CFR Taiwan in a privately negotiated deal, the same day that the offers for any-July delivery CFR Taiwan cargo fell during the Platts MOC process to $677/mt, with the FOB Korea and CFR Taiwan markers assessed at $656/mt and $676/mt, respectively.
The any-July delivery cargo, has since been sold, at $668/mt CFR Taiwan, on June 17, said a source familiar with the matter.
