European isomer-grade mixed xylene prices climbed to just shy of the $1,200/mt FOB ARA mark on Wednesday, according to market sources, as the arbitrage to India opened.
In addition, spot prices were supported by a firm US market, which climbed to $4.14/gal or $1,259/mt FOB USGC.
This week's market compares to a Platts assessment of $1,175/mt FOB ARA on Friday. Platts assesses virgin-grade MX on a weekly basis every Friday.
Market sources in particular pointed to the arbitrage in India as a determining factor for the higher European prices.
A parcel was heard traded at $1,180/mt FOB ARA on Tuesday and sources said it was destined for the Indian market. Details of the trade could not be confirmed.
Prices for MX in India are now at around $1,280/mt CFR India, according to some trader sources. Some said that freight from Rotterdam to main-port India was around $100/mt. Another trader said: "For 2,000 mt you will pay easily in the $80/mt." This meant that parcels could be landed in India at a small profit.
Arbitrageurs had been looking for parcels to ship and prices were seen increasing to around $1,190-1,200/mt, with some indications of offers at $1,220/mt FOB ARA.
"Asia is strong so the arb to me in India looks open," an industry source said.
In Asia, FOB Korea prices were assessed by Platts at $1,252/mt on Wednesday.
