The high premium of US spot mixed xylene to the blend value could limit purchases, sources said Monday, as US spot mixed xylene was assessed Friday at a 99.90 cents/gal ($320.70/mt) premium to the blend value, the highest premium in more than four years.
The last time the MX spot premium to the blend value was this high was January 23, 2007, when it was at 104.26 cents/gal, according to Platts data.
Mixed xylene was assessed Friday at 426 cents/gal ($1,290.78/mt) FOB USG after hearing September offers at 435 cents/gal against September bids that started the day at 430 cents/gal and moved down to 425 cents/gal by Platts market-on-close assessment window.
Mixed xylene most recently traded Wednesday at 421 cents/gal for October from Citgo to Kolmar. The premium to the blend value that day was 45.15 cents/gal.
Market participants said Friday that the industry considered the blend value to be the price floor for mixed xylene, so a relatively high premium would make it unattractive to purchase.
"Friday's high premium certainly would not help demand for MX increase," said a trader Monday.
The price of mixed xylene was said by sources to be supported by tightness in the market. ExxonMobil was in turnaround mode at its facility in Baytown, Texas -- with a mixed xylene capacity of 17,900 barrels/day -- until September 16. Shell was in a turnaround at its facility in Deer Park, Texas -- with an MX capacity of 4,900 b/d -- until September 23.
A source from Total confirmed Friday that its reformer in Port Arthur, Texas -- with an MX capacity of 7,672 b/d -- would be undergoing maintenance until the end of September. There was an issue with Total's catalyst that led to the maintenance.
As such, about 30,742 b/d of mixed xylene production will be temporarily removed from the market until September 16.
"I am not surprised to see a strong MX price, as the market is tight," said a broker Monday.
