Stronger crude prices pushed Asian petrochemical prices higher overnight. The Asian benzene benchmark jumped $16/mt day-on-day to be assessed at $1,087.50/mt FOB Korea as August Brent crude futures climbed 74 cents over the same period to $112.68/b at 4:30 pm Singapore time (0830 GMT).
The rise in crude overshadowed an overnight fall in US and European benzene prices.
The US benzene price was assessed Monday at $1,112/mt FOB USG. The European benzene price fell to $1,093/mt CIF ARA. This morning in Europe benzene for June was heard bid at $1,080/mt and offered at $1,100/mt CIF ARA.
July benzene was heard bid at $1,105/mt and offered at $1,130/mt CIF ARA.
Meanwhile, the arbitrage window from South Korea to the US has closed so Asian market participants are concerned about the buildup of benzene stocks in the region.
In Southeast Asia, ExxonMobil's second petrochemical project on Singapore's Jurong Island has been delayed to 2012 from 2011.
"We anticipate commissioning and startup activities of the new downstream units to occur in phases through 2011 and 2012," the company said in a statement.
Asian toluene rose Tuesday as crude and naphtha prices firmed, with the FOB Korea marker assessed at $1,063/mt, up $20/mt or 1.9% day-on-day. Despite the firmer FOB Korea price, the FOB Korea-FOB US Gulf arbitrage remains closed. The FOB USG price was assessed at $1,094.40/mt--$31.40 above the FOB Korea price. The freight for a 10,000 mt cargo from South Korea to the US Gulf was assessed at $55-60/mt Tuesday. Meanwhile, the CFR China L/C 90 days marker was assessed at $1,072/mt, up $6/mt day-on-day, lagging the increase in FOB Korea due to weak demand. The European toluene price was assessed Monday at $1,065/mt FOB Rdam.
The US toluene price assessment on Monday was about 15 cents above gasoline blend values as US gasoline prices fell sharply. The US toluene assessment in cents/gal was assessed at 360 cents/gal. The blend value for toluene was at 345 cents/gal on Monday. Blend values have fallen about 33 cents during the past week.
The toluene blend value has fallen because of recent sharp drops in the US Unleaded gasoline price. The Unleaded US Gulf Waterborne gasoline price fell to 279.22 cents/gal on Monday. The price has fallen more than 27 cents during the past week. The current spot price is well below the 5-day moving average and the 20-day moving average.
Paraxylene prices in Asia rose $19/mt Tuesday, the strongest day-on-day increase since May 10, to be assessed at $1,463/mt CFR Taiwan/China. The spread between paraxylene and isomer grade mixed xylene remained strong as isomer-MX rose $21/mt day-on-day to $1,187.50/mt CFR Taiwan. In production news in China, Fujiadahua's 700,000 mt/year PX plant in Dalian province was reported to be down for two weeks due to mechanical problems. Company officials could not immediately be reached for confirmation. The US paraxylene price was assessed Monday at $1,442.50/mt FOB USG. The European paraxylene price was assessed at $1,465/mt FOB Rdam.
Asian styrene monomer rose $11/mt Tuesday to $1,354/mt FOB Korea on the back of firmer energy and feedstock benzene. An Asian trader said it is unlikely that Northeast Asian producers will cut production going forward as their margins have improved on sharp falls in ethylene and a generally wider spread to benzene.
Ethylene, which has shed $209/mt since May 20, was unchanged day-on-day at $1,096/mt CFR Northeast Asia Tuesday, while benzene rose, reducing the SM-benzene spread $5/mt to $266/mt. The US styrene price remained the highest globally at $1,394/mt FOB USG. The European price was assessed at $1,380/mt FOB Rdam on Monday. This morning, June styrene in Europe was heard done at $1,400/mt FOB ARA and July was heard done at $1,410/mt FOB ARA.
