US AROMATICS
Pricing moved lower on the week amid expectations of improved supply while demand remained muted. Prompt spot toluene prices fell 8 cents on the week to close Friday at 264 cents/gal FOB USG while April mixed xylenes moved lower in concert, closing Friday's session at 251 cents/gal FOB USG.
Sources said toluene demand from disproportionation units remained weak despite improved economics associated with lower feedstock costs. MSTDP margins were last estimated at near $38/mt while TDP margins were firmly entrenched in negative territory at minus $23.25/mt. Some sources talked of pushing toluene into the gasoline pool but this could be challenging given a significant spread between spot reformate values and the toluene blend value.
Meanwhile sources anticipated that demand for mixed xylenes would remain curtailed amid ongoing maintenance by PX producers. One producer was expected to come back online in April after a planned maintenance however sources talked of a second producer undergoing turnaround. PX prices would likely see support however from stronger demand from the PTA segment amid the onset of bottling season for PET makers. Sources anticipated little change in near term demand however supply side conditions were expected to improve with restarts by both Citgo and Marathon.
US METHANOL
US methanol entered into backwardation late last week, market interest has shifted to forward month product, with many participants suggesting the front month (April) has hit its price ceiling at 120 cents/gal FOB USG.
Global maintenance continues to support firm prices seen through US, European and Asian markets.
The turnaround in Venezuela remains ongoing at the 750,000 mt/year Metor I methanol production facility. The work at Metor I was heard to be underway, according to a source, as it was scheduled to begin in early April. The 850,000 mt/year Metor II facility will undergo its own turnaround later, sources said. Further details regarding the duration of the turnaround were not available. The Metor plants are located at state Pequiven's Jose Antonio Anzoategui petrochemical complex in Anzoategui and are near the 725,000 mt/year Supermetanol facility. Metor is a joint venture between Pequiven and Mitsubishi.
The Supermetanol facility is a 50:50 joint venture between Pequiven and Italy's Eni. Supermetanol remains down after going offline for a planned turnaround with no specific schedule to restart, as the economic crisis in Venezuela has delayed its restart.
Additional global locations where producers will undergo maintenance during April and May include Europe, the Middle East, China and Southeast Asia, sources said.
US MTBE
Market participants continue to talk of current market fundamentals that support the widened US premium to Europe at 18 cents/gal FOB USG. Supply constraints in the Gulf Coast, strong blend values and robust demand in Mexico with several cargoes heard for export were among the factors heard through the market by sources.
Supply conditions were set to improve in the coming weeks, as a producer was set to ramp production back up following a completed turnaround.
LATIN POLYMERS
Buyers in South America have been somewhat slow to respond to lower pricing indications in recent weeks, and that trend could continue throughout the first half of April as the market looks for a pricing floor on polyethylene and polypropylene spot import cargoes, sources have said.
Pricing for linear low-density PE has seen the most downward movement entering April, pushing some buyers from the sidelines as converters in key South American markets have increased the percentage of LLDPE used in blended applications, sources have said.
Brazilian producer Braskem enters the week with stable domestic and export pricing as it continues to monitor pricing in the US and Asia, a company source said.
