Paraxylene prices extend collapse in Asia as benzene continues to dip

19-Mar-12

Amid falling oil prices, Asian benzene dropped by US$14/mt in the week on March 16 to be assessed at US$1180.50/mt FOB Korea as per Platts. The Asian paraxylene market extended its collapse into a second day on March 16, with the price sinking by US$44.50/mt from March 15 to be assessed at US$1540/mt FOB Korea and US$1565/mt CFR Taiwan/China. Selling pressure in the Asian PX market continued in the morning of March 16, particularly for May arrival, on a total of 10,000 mt of deepsea cargo being moved from the US to Asia. 10,000 mt of deepsea cargo has already been fixed and other traders were also seeking opportunities to do the same. PX demand was also slashed by the latest round of run cuts at downstream purified terephthalic acid plants across Asia. The cuts started to become more visible recently, in line with worsening margins. Market sentiment plunged this week as Asian polyester fiber chain prices collapsed. Asian styrene monomer fell by US$28.50/mt this week on March 16 to US$1467/mt FOB Korea and by US$19/mt to US$1478.50/mt CFR China as energy prices declined amid bearish news out of China as the Premier reiterated mid-week that China will continue to control its housing market, something that was seen as having a negative impact on downstream markets such as expandable polystyrene.