Benzene in Asia up 1.5% week on week amid strong demand for prompt cargoes, despite falling crude

25-Jun-12

Asian benzene rose by US$15/mt or 1.5% week on week to US$1015.50/mt FOB Korea June 22, amid strong demand for prompt cargoes, despite falling crude prices. Day on day, the marker was down US$7.50/mt, or 0.7%, as per Platts. The benzene-naphtha spread widened US$74.25/mt week on week to a 29-month high of US$317.25/mt June 22 as naphtha prices fell US$59.25/mt or 7.8% over the same period to US$698.25/mt CFR Japan amid deteriorating demand and lower crude. Taiwan's Formosa Chemical & Fiber Corp. restarted its three aromatics units at Mailiao late June 21 after resolving a power outage problem. US benzene price was assessed on June 21 at US$1225/mt FOB USG. In Europe, June 21 price was assessed at US$1173/mt CIF ARA. Asian paraxylene dived by US$42/mt day on day June 22 to end the week at US$1227.50/mt CFR Taiwan/China. Week on week, PX lost US$45.50/mt or 3.57%, erasing earlier gains as prices tumbled in tandem with global crude prices. Derivative purified terephthalic acid (PTA) ended June 22 at US$920/mt CFR China, down ten dollars from Thursday. It was shielded from the bloodshed in the market as China was closed for a public holiday. Asian styrene monomer prices for H1-August fell US$18 Friday to US$1259/mt FOB Korea. The SM market turned bearish on June 21 and June 22 as tumbling crude oil prices hammered sentiment. In statistics news, China's imports of SM soared 45% month on month to 270,040 mt in May, customs data released June 22 showed. China’s polystyrene output in May fell 14% month on month to 52,100 mt, and was down 24% from the same month last year. The US styrene price remained the highest globally June 21 at US$1308/mt FOB USG. The European price for July was assessed June 21 at US$1290/mt FOB Rda