East China MX stock surges 20% on week to 54,000 mt amid weak buying ahead of holidays
Singapore (Platts)--1Feb2013/542 am EST/1042 GMT
Inventory levels of mixed xylenes imported into East China increased by
9,000 mt, or 20%, week on week to 54,000 mt Friday, market sources said
"Almost 60% of the MX inventory currently in East China storages is
solvent-grade mixed xylenes. [And there is weak demand for] solvent-grade MX
in China due to the Lunar New Year holidays," a Chinese trader said.
The solvent-grade MX is mainly used for making paints and cleaning
agents and with factories to remain shut during the week-long Lunar New Year
holidays starting February 9, buyers have stopped procuring the product,
Traders had hiked MX imports since late last year, when prices started
moving down after hitting an all-time high. The Asian solvent-MX price has
been on a downtrend since last December, after hitting an all-time high of
$1,320/mt CFR China on December 14.
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Last Friday, the solvent-MX CFR China marker was assessed down $6/mt
week on week at $1,247/mt.
"Chinese buyers tend to stockpile solvent-MX when prices are cheaper," a
South Korean trader said. South Korea is one of the main suppliers of
solvent-grade MX into China.
The stocks had also gone up as traders were looking to import more
cargoes to replenish dwindling stocks in East China. In end-November the MX
inventory in East China had dropped by 2,800 mt, or 12.3%, week on week to
20,000 mt -- a 44-month low, Platts reported.
Meanwhile, the MX inventory level in South China has also gone up by
2,000 mt, or 33.33%, week on week to 8,000 mt Friday.
--Michelle Kim, email@example.com
--Edited by Haripriya Banerjee, firstname.lastname@example.org