European mixed xylene suppliers were looking to put together cargoes for export to Asia as the arbitrage window to China and India looked open this week, sources said Friday.
One supplier said it was putting together a 5,000 mt cargo it planned to load between November 25-December 10 and was expected to arrive in China in January.
With European virgin MX prices assessed last week at $1,170/mt FOB Rotterdam, and China prices at around $1,300/mt and freight costs of around $90/mt to Asia, exporters could achieve profits from shipping to Asia.
Traders this week also talked of additional solvent MX export demand to India and Pakistan as prices there hit around $1,295/mt CFR Kandla, according to one trader.
"I'm hearing some are looking to buy for India, with either two-three parties having placed at least 3,000 mt loading between November 25-29," a second trader said.
Another trader said that the volumes fixed for export could be as much as 8,000 mt, but details could not be confirmed.
One trader countered that the solvent MX arbitrage to India was not open, instead citing prices closer to $1,255/mt, and thus limiting the profit margins available from export.
As a result, European virgin mixed xylene prices have partially recovered from a $90/mt slump last week to price at $1,200-1,210/mt FOB, up at least $20/mt from the Platts assessed level of $1,170/mt on November 16.
Both isomer and solvent grade spot prices were assessed by Platts at $1,170/mt FOB Rotterdam on November 16. Solvent xylenes were assessed $10/mt up at $1,180/mt on Tuesday.
In addition to the recovery in the energy complex, sources said that the arbitrage had supported firmer European prices.
