The US to Asia arbitrage for isomer-grade mixed xylenes opened Monday, after US MX prices plunged, outpacing the fall in Asia prices, Platts data showed.
Prices in the US and Asia fell on the back of lower crude oil futures.
"[The US-Asia arbitrage] is slowly opening up for September," said one trader.
Another trader, based in South Korea, meanwhile, went ahead and booked a spot cargo from the US on Monday, while others said they prefer to wait longer.
"I booked some of the spot US volume [Monday] other than the term contract volumes," said the South Korean trader, who is planning to move the barrels to Asia.
In Asia on Monday, isomer-MX prices fell $28.50/mt, or 2.3%, from last Friday to be assessed at $1,213.50/mt FOB Korea and $1,228.50/mt CFR Taiwan.
In the US, MX prices fell by 27 cents/gal, or 6.6%, from Friday to 380 cents/gal ($1,155.20/mt) FOB US Gulf Monday. US prices had a steeper fall as the market had covered some of its shorts earlier, leading to slower demand, sources said.
At these prices, US MX could arrive in Asia at $1,210.20/mt with the US-Asia MX spread at $73.30/mt and freight at $55-$60/mt.
Both Asia and US MX prices declined on Monday on the back of weaker crude futures. September NYMEX crude settled $3.69 lower at $88.14/barrel on Monday.
The last time the US-Asia MX arbitrage was open was on March 20 when the spread was assessed at $58.74/mt.
