Benzene prices in Asia rose for a third consecutive day Wednesday as the downstream styrene monomer market surged amid higher crude futures and naphtha prices. Prices on an FOB Korea basis gained $13.50/mt day on day to $1,074/mt. (See related charts: Daily standard prices: benzene, styrene, toluene, paraxylene: Jan 4 - Jul 6, 2011).
August ICE Brent crude futures gained $1.67/barrel over the same period to be pegged at $112.75/b at 4:30 pm Singapore time (0830 GMT). As for naphtha, it gained $18.88/mt day on day to $946.38/mt CFR Japan. But concerns emerged about the sustainability of SM gains as September benzene bids fell to around $1,078/mt FOB Korea in the afternoon.
br/> "We do not see additional consumption from SM producers; the loosening of credit for SMEs [small and medium enterprises] in China may be the reason why SM is so buoyant for this week," a market participant said.
The US benzene price remained the highest globally at $1,118/mt FOB USG on Tuesday. The European benzene price was assessed Tuesday at $1,101/mt CIF ARA. This morning in Europe, July benzene was heard bid at $1,100/mt and offered at $1,110/mt CIF ARA. August benzene was heard bid at $1,115/mt and offered at $1,130/mt CIF ARA.
Asian styrene monomer surged $24.50/mt day on day Wednesday to $1,400/mt FOB Korea, tracking higher energy prices and firmer sentiment. Early Wednesday, a deal was heard done between two Chinese trading companies for an August arrival SM cargo at $1,425/mt CFR China, while other sources said the market was being negotiated in a range of $1,420-1,430/mt CFR China.
Market activity seemed relatively quiet, with sellers holding on to their cargoes in anticipation of prices rising further. But an end-user said: "I just hear the traders play; no end-users and no real demand to talk price."
The climbing styrene price in Asia widened the delta between the FOB Korea and FOB USG price to $23/mt, still well below levels required to motivate exports from the US. The European styrene price was assessed Tuesday at $1,370/mt FOB Rdam.
Asian toluene firmed Wednesday amid higher crude and increased buying interest. The FOB Korea marker was assessed at $1,077.50/mt, up $15/mt from the day before.
Supporting demand for toluene is South Korean refiner GS Caltex, which is currently operating its Yeosu Mobil toluene-to-paraxylene unit at 100% capacity following a restart in June, a company source said Wednesday. The MTPX unit was shut early June for a turnaround. It was initially slated for an April shutdown but this was postponed due to attractive paraxylene/toluene margins at the time.
The US toluene price was assessed at $1,124/mt FOB USG on Tuesday, $47 above the Asian price. The European toluene price was at a nearly $10 discount to the US price.
The US Gulf unleaded waterborne gasoline price continued to climb on Tuesday. The price was assessed at 296.92 cents/gal, up nearly 27 cents during the past two weeks. The recent increase has pushed the assessment above the 20-day moving average which was near 292.65 cents/gal on Tuesday.
The climbing RBOB gasoline price pushed gasoline blend values for US toluene to 381 cents/gal. The blend value was 11.6 cents above the US toluene price, which was assessed at 370 cents/gal on Tuesday.
Asian paraxylene prices were assessed $6/mt higher day on day Wednesday at $1,382/mt CFR Taiwan/China. Upstream, isomer-grade mixed xylene tracked up $6/mt day on day to $1,156/mt FOB Korea, while downstream purified terephthalic acid gained $7/mt over the same period to $1,165/mt CFR China.
The US paraxylene price remained the highest globally at $1,447.50/mt on Tuesday. The European paraxylene price was assessed Tuesday at $1,423/mt FOB Rdam.
