Graph Analysis
DeWitt's News
 
Key Drivers - Aug 10,2012

Orthoxylene & PA

Americas USGC Contract settles up to 65 cpp for August.
Europe The market is stable; Trader product struggles to find a home.
Asia OX firms up in line with MX, but could face resistance from lackluster derivatives.
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Supply & Demand
 
Market Commentary

Orthoxylene - Newsletter#: 1774
Date: 08/10/2012

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Americas

The USGC August contract was settled up 6 cpp. Values moved on xylenes spot increases due to producer outages and poor extraction economics. Demand for Ortho-xylene in other regions is reportedly soft with prices having already moved in Asia and European traders searching for markets. Issues surrounding the Mississippi River likely played a factor in pricing moves. Spot values should now be adjusting to 62-65 cpp.

Europe

Demand is covered with contract purchases. Material in trader hands in Rotterdam cannot for now find a home at $1300.

Asia

OX manages slight gains this week in line with pressure from crude oil/naphtha down to MX. Offers rose to $1340 CFR China on Thursday and today, and there were reports of deals done early in the week at $1325-$1330 CFR. The China market displayed no change with spot OX at Rmb 9900-10,000. At an import equivalent of 1280-1290 $/MT, it will be difficult for CFR prices to firm up further. Even domestic OX prices may soon hit a ceiling as Sinopec has not raised their ex-factory prices in line with July’s uptrend in spot price. Derivative markets were mixed with DOP firming back to up Rmb 12,600 in China. However, PA prices declined reflecting the lack of buying interest this week, particularly out of East China due to inclement weather. While PA sentiments dropped to Rmb 12,500-12,600, upstream players are still confident that demand will return once typhoons/floods abate and allow PA producers to return to work. So, it is unlikely this week’s drop in PA price will have any impact on OX sentiment.
Current Prices

Orthoxylene

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Unit
RegionPeriodProductSpot LowSpot HighUnitContract LowContract HighUnitDescription
NA Nov 2012 Orthoxylene 0.6260 0.6400 $/LB 0.6375 0.6375 $/LBFOB
WE Nov 2012 Orthoxylene 1,362 1,412 $/MT 1,120 1,120 €/MT 
AP Nov 2012 Orthoxylene - Korea 1,454 1,473 $/MT  FOB
  Nov 2012 Orthoxylene - SEA 1,476 1,494 $/MT 1,448 1,448 $/MTCFR
NA = North America, SA = South America, WE = West Europe, AP = Asia Pacific
Historical Pricing
 
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