Spot mixed xylene prices moved sharply higher Tuesday, tracing gains in Asia and effectively closing the arbitrage between the US and Asia, industry sources said Tuesday.
March mixed xylene prices were heard bid Tuesday at 370 cents/gallon FOB USG against offers at 380 cents/gallon FOB USG, up roughly 9 cents from the last trade, heard done Monday at 366 cents/gallon ($1,109/mt) FOB USG.
The gains closed an arb between the US and Asia that had opened briefly. US prices followed increases in Asia as MX prices hit a 30-month high, gaining roughly $28/mt overnight to close at $1,175.50/mt FOB Korea and $1,194.50/mt CFR Taiwan.
Sources attributed the higher prices to gasoline shortages resulting from last week's earthquake and tsunami in Japan and noted that supplies would remain tight in the near term as most of the country's toluene and MX would be divereted into gasoline.
The increase also defied energy prices which moved sharply lower Tuesday with NYMEX crude futures down $4.01 at $97.18/barrel while RBOB fell roughly 14.50 cents to $2.81.
