China Petroleum and Chemical Corporation, or Sinopec, subsidiaries raised ex-works orthoxylene offers in East China by Yuan 200/mt Wednesday, the second increase this year, a source close to the matter said Thursday.
Yangzi-BASF and Sinopec Zhenhai, the company's subsidiaries in East China, are currently offering OX at Yuan 7,300/mt, equivalent to about $890.45/mt on an import parity basis.
According to the source, Sinopec's firmer OX prices would likely push up downstream phthalic anhydride prices.
This in turn would spur buyers to stock up on OX-based PA before prices rise further, boosting OX demand, the source said.
Domestic PA trade has been stagnant for the past three weeks, the source added.
Indications of tradeble levels in the domestic OX-based PA market also remained stagnant at Yuan 7,700-7,800/mt since February 9.
OX inventories at the East China port currently stand at 44,000 mt, which is considered more than ample.
The last time Sinopec had raised OX prices was on February 9. The price was raised by Yuan 200/mt to Yuan 7,100/mt.
