Paraxylene price declines in line with falling energy values

Asian paraxylene prices slumped US$28.33 a ton CFR Taiwan/China and FOB Korea in the third week of June. Isomer-grade mixed xylene prices declined US$19 a ton FOB Korea on the week.

Paraxylene prices moved in line with falling energy complex, falling sharply on Thursday following the almost US$1 a barrel drop in crude oil prices overnight. Naphtha and mixed xylene values also declined as well with latter hitting 6-week low. Although several paraxylene units are under maintenance shutdown, supply was still loose as a whole. Negotiation for contract price will begin soon.

In Europe, decreasing crude oil and Eurobob gasoline values asserted downward pressure on the paraxylene and mixed xylenes markets that week. European spot paraxylene lost US$28 a ton FOB Rotterdam while mixed xylene tumbled US$18.50 a ton CIF ARA.

In US, paraxylene spot declined taking cue from falling Asian values while mixed xylene prices were largely flat amid limited liquidity. Prompt spot paraxylene dipped US$10 a ton FOB USG, while spot mixed xylenes were largely flat on the week.

Courtesy: Weekly PriceWatch Report