Paraxylene prices in Asia fell to their lowest level in seven years at the start of the week after crude oil continued to weaken amid bearish fundamentals, Platts data showed.
Both PX benchmarks fell US$15/mt from Friday to $709.67/mt FOB Korea and US$730.67/mt CFR Taiwan/China Monday. The benchmarks were last lower January 5, 2009, at US$687.50/mt FOB Korea and January 6, 2009, at US$726/mt CFR Taiwan/China.
PX prices closely track crude oil and naphtha prices.
Asian naphtha has tumbled US$47.25/mt since December 31 to US$361.75/mt CFR Japan on Monday. Over the same period, PX fell only US$35.83/mt, meaning production margins have widened to US$347.92/mt -- up US$11.42/mt in 2016 so far, well above the US$280-300/mt typically required for profitable production by integrated producers.
"I think [the widening PX-naphtha spread] was driven by a naphtha crack correction, relatively firm purified terephthalic acid -- both physical and futures -- as well as polyester, and [end-users'] strong buying [of PX]," a trader said.
14-Jan-16 
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