PX/isomer-MX spread in Asia dips to 3 year low on abundant paraxylene supplies

15-Nov-13

The spread in Asia between paraxylene and feedstock isomer-grade mixed xylene hit a three-year low of US$160/mt Wednesday, amid an open arbitrage into Asia for PX but tight regional supplies for isomer-MX, as per Platts On Wednesday, Platts assessed the CFR Taiwan/China PX benchmark down US$2/mt day on day at US$1420.50/mt, but the CFR Taiwan isomer-MX price jumped US$22/mt to US$1260.50/mt -- putting the PX/isomer MX spread at US$160/mt. The spread was last lower on October 11, 2010, when it stood at US$148.50/mt, according to Platts data. The Asian PX market has been under pressure since early November, on rising deep sea supplies amid an open arbitrage window from the US to Asia. Supplies in Asia have also increased with the restart early this month of Indonesian Trans Pacific Petrochemical Indotama's long-shut 550,000 tpa PX plant in East Java. The plant was shut in December 2011 for scheduled maintenance but has remained closed since then due to funding issues. The company has already sold two PX spot cargoes totalling 10,000 mt for loading in December via tender. On the other hand, isomer-MX supplies are tight, with a closed arbitrage window from the US to Asia. But some Asia-based market sources said Thursday that the regional PX/isomer-MX spread would likely not narrow further.