The spread between isomer-grade mixed xylenes prices in the US and Asia has narrowed to a nine-week low of $74.54/mt Tuesday, down by $14.83/mt from a day earlier, as US isomer-MX prices soared, Platts data showed.
Industry sources attributed the recent spike in US isomer-MX prices to problems faced by a refinery, which was not identified, and some plant turnarounds scheduled for end December or early January.
On the other hand, while the isomer-MX market in Asia was on an uptick this week, it was lackluster compared with its US counterpart, on impending deepsea cargo arrivals in January.
The arbitrage window to send Asia isomer-MX cargoes to the US opened October 12, when isomer-MX prices were assessed at 403 cents/gal FOB US Gulf ($1,225.12/mt), and at $1,298.50/mt CFR Taiwan.
Isomer-MX prices soared in the US by 17 cents/gal, or 4.8%, from last Friday to 374 cents/gal FOB US Gulf ($1,136.96/mt) Tuesday, while Asian isomer-MX notched up marginally by $11/mt, or 0.9%, over the same period to $1,211.50/mt CFR Taiwan.
At such prices, the US-Asia isomer-MX arbitrage is closed on paper, as US MX will cost about $1,216.96/mt in Asia -- after taking into account freight of $80-100/mt -- $5.36/mt higher than the Asian isomer-MX price.
"Vessel [availability] is still tight, but with the closure of the US-Asia arbitrage, such tightness may ease," said a South Korean trader.
