The European area blended xylene market is most likely to stay under downward stress in August from higher accessibility, much less acquiring rate of interest as a result of unfavorable paraxylene production economics as well as a shut arbitrage to US, market resources said this week.
After striking an eight-month high 2 weeks ago at $1,170/ mt FOB ARA, the Isomer grade was assessed at $1,145/ mt FOB ARA last week, down by $35/mt.
A deal was heard today at $1,140/ mt and also there was no acquiring passion reported.
" biocides , no arbitrage [to the United States] and also enough production," one source stated of the market this week, including that accessibility was rising.
Assumptions about the economics of producing PX were bearish regardless of higher cash margins due to the impending startup of brand-new production facilities in Asia.
The monthly costs of PX FOB ARA over CIF NWE naphtha cargoes, among the indications of PX manufacturing economics, balanced $379/mt in July, the greatest because the start of the year. Nonetheless, the July average was 22.72% less than the average costs for 2013, Platts information showed.
The regular average of PX costs to Isomer xylenes in July was seen at $151.25/ mt, nonetheless, the once a week average in 2014 was 40.65% less than the once a week standard in 2013.
The FOB USG combined xylene market has actually dropped 35 cents/gal because July 7 to 383 cents/gal ($1,164.32/ mt) Thursday, Platts data showed.
"United States market is dropping, at $1,165/ mt the arbitrage [from Europe] is closed, at this level there is no opportunity of sending item to the US," a 2nd source said.
In addition, market resources claimed that material was expected to find onto the market from Total's Flushing refinery, which began stream after the end of maintenance. The source at Overall was not readily available for comment.
"Flushing material is still out the spot market," the second source said, adding that it could spend some time for Flushing's production to hit the market.
The European area blended xylene market is most likely to stay under downward stress in August from higher accessibility, much less acquiring rate of interest as a result of unfavorable paraxylene production economics as well as a shut arbitrage to US, market resources said this week.