S-Oil, ExxonMobil nominate Mar PX ACP at $1,750/mt CFR, up $65
Tokyo (Platts)--25Feb2013/523 am EST/1023 GMT
South Korea's S-Oil nominated its paraxylene Asia Contract Price for
March at $1,750/mt, up $65/mt from its February settlement, sources close to
the negotiations said Monday.
There are four ACP sellers in Asia -- ExxonMobil, Idemitsu Kosan, JX
Nippon Oil and Energy and S-Oil. ExxonMobil also nominated its March PX ACP
at $1,750/mt CFR, up $65/mt from its February settlement.
Last week, Idemitsu nominated its March PX ACP at $1,800/mt and JX at
ExxonMobil, JX and S-Oil settled their February PX ACPs at $1,685/mt CFR,
while Idemitsu Kosan did not settle its February PX ACP.
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The nomination price of $1,740-1,750/mt CFR by the three ACP sellers was
lower end of the market's expectation of $1,750-1,770/mt CFR, while
Idemitsu's nomination was much higher than the expectation range. Industry
sources Idemitsu would likely revise to the mid-$1,700s/mt CFR level soon.
"After Idemitsu's nomination on Wednesday, spot PX market sentiment
became weak. Idemitsu needs to reflect that weakness to the nomination," said
an industry source.
According to Platts' data, the CFR Taiwan/China PX price was assessed at
$1,699.50/mt last Friday, down $13/mt from last Wednesday.
So far, no counter bids were heard from ACP buyers but industry sources
are expecting the counter bids to be in the mid-$1,600s/mt CFR.
There are six ACP buyers: BP, Taiwan's Capco, Oriental Petrochemical
(Taiwan) Corp., Japan's Mitsui Chemicals and Mitsubishi Chemical, and China's
"Naphtha feedstock prices are quite high. Even though the outlook of
downstream purified terephthalic acid is gloomy, the end-users can not ask
lower settlement than February," said another industry source. "It seems they
are targeting rollover from February at least."
According to Platts' data, the CFR Japan naphtha price averaged at
$1,004.13/mt so far in February, up $44.77/mt, or 4.6% from January. The CFR
China PTA price averaged at $1,197/mt so far in February, up $6/mt from
January. The Asian PTA market has been bearish after the Lunar New Year
holidays, pressured by high inventories and weak downstream polyester.
--Fumiko Dobashi, firstname.lastname@example.org