The paraxylene to mixed xylene spread in Europe hit a four-month low on Monday due to a strong bid for MX propping up MX amid weak PX fundamentals depressing prices, according to Platts data.
PX was assessed at $598/mt FOB ARA Monday, down $5/mt from Friday, while MX was assessed at $499/mt FOB ARA Monday, up $15.50/mt. This placed the spread between the prices at $99/mt, shrinking $20.50/mt from Friday, and the lowest level since September 16. MX is a feedstock for PX.
The decline in the spread followed Total's bid for solvent MX during Platts MOC, which increased the MX premium.
The bid was outstanding at a $142/mt premium over the February Eurobob gasoline swap. Platts assessed the premium over both the January and February swaps a dollar above the outstanding bid at $143/mt, $18.50/mt above the level from Friday.
The higher premium was a result of export interest for mixed aromatics and reformate to Asia tightening the octanes market, according to sources.
No MX offers were heard suggesting that MX was a buyer's market.
On the other hand, PX demand was reported weak by several sources.
Several producers and traders were looking to export PX, as demand within Europe was subdued.
Indeed, Artlant's 700,000 mt/year purified terephthalic acid plant in Sines, Portugal, remained idled.
PX is a feedstock for PTA.
The low PX-MX spread meant that PX spot production was not profitable. Industry sources have previously said that the spread needs to be above $150/mt for spot production to make sense.
It has been trending below $150/mt since January 8.
"With the current PX-MX spread, there is no economic incentive to produce spot PX," a source said last Friday.
