SINGAPORE After US light crude futures surged $5/bbl to above $140/bbl overnight, Asian petrochemical players raised their discussion levels of key products such as aromatics early Friday, buyers and sellers said.
The New York Mercantile Exchange (NYMEX) light sweet crude futures for August delivery crossed the $140/bbl mark on Thursday for the first time before settling at a record $139.64/bbl on the back of fresh supply concerns.
Numbers peaked at a record of $140.39 during intra-day trading, before falling and settling $5.09 higher from the previous day s close.
We cannot be too sure if [aromatics] prices will certainly surge on the back of this increase in oil prices, but it seems like it, said a Hong Kong-based trader-cum-distributor.
Benzene discussions for any August rose towards $1,325-1,355/tonne FOB Korea at 10:00 Singapore time, up $10-25/tonne from yesterday s closing levels of $1,315-1,320/tonne FOB Korea.
Toluene and styrene monomer (SM) for August delivery were also higher, at $1,270-1,285/tonne FOB Korea and $1,630-1,640/tonne FOB Korea respectively. This translated into a gain of $15-25/tonne from the previous day s close for both products.
The jump in aromatics prices was also in line with the spike in naphtha numbers.
Asian naphtha prices were discussed $39.50/tonne higher Friday, with first half August indications pegged at $1,218.50-1,221.50/tonne CFR (cost and freight) Japan, while H2 August was at $1,210.50-1,213.50/tonne CFR Japan.
On the other hand, propylene prices looked set to ease due to high stock levels in China, around $1,750-1,850/tonne CFR NE Asia Friday; ethylene was eking out small gains of no more than $20/tonne and struggling to touch $1,650/tonne CFR NE Asia.
China s largest petrochemical producer Sinopec was said to be weighing the consequences of the recent crude spike against very high polymer inventory levels ahead of the Olympics. The producer could eventually decide to cut production rates next week rather than readjust polymer prices down as a result of $140/bbl crude.
Paraxylene (PX) markets were quiet, given slack demand among end-users due to squeezed margins. PX prices closed on a bearish tone at $1,615-1,630/tonne CFR Taiwan yesterday, with no signs of a trend reversal in early trades on Friday.
The trend in crude oil pricing is important but ultimately we need to see the real demand and supply situation too, said a Singapore-based aromatics trader.
As of now, it s uncertain how the markets will move; one day it s down, the next day it s up so very volatile and in such cases, it d be natural for most of us to adopt a wait-and-see [attitude], especially it s the end of the week , said a Korean producer of aromatics which also trades actively in the spot market.
The New York Mercantile Exchange (NYMEX) light sweet crude futures for August delivery crossed the $140/bbl mark on Thursday for the first time before settling at a record $139.64/bbl on the back of fresh supply concerns.
Numbers peaked at a record of $140.39 during intra-day trading, before falling and settling $5.09 higher from the previous day s close.
We cannot be too sure if [aromatics] prices will certainly surge on the back of this increase in oil prices, but it seems like it, said a Hong Kong-based trader-cum-distributor.
Benzene discussions for any August rose towards $1,325-1,355/tonne FOB Korea at 10:00 Singapore time, up $10-25/tonne from yesterday s closing levels of $1,315-1,320/tonne FOB Korea.
Toluene and styrene monomer (SM) for August delivery were also higher, at $1,270-1,285/tonne FOB Korea and $1,630-1,640/tonne FOB Korea respectively. This translated into a gain of $15-25/tonne from the previous day s close for both products.
The jump in aromatics prices was also in line with the spike in naphtha numbers.
Asian naphtha prices were discussed $39.50/tonne higher Friday, with first half August indications pegged at $1,218.50-1,221.50/tonne CFR (cost and freight) Japan, while H2 August was at $1,210.50-1,213.50/tonne CFR Japan.
On the other hand, propylene prices looked set to ease due to high stock levels in China, around $1,750-1,850/tonne CFR NE Asia Friday; ethylene was eking out small gains of no more than $20/tonne and struggling to touch $1,650/tonne CFR NE Asia.
China s largest petrochemical producer Sinopec was said to be weighing the consequences of the recent crude spike against very high polymer inventory levels ahead of the Olympics. The producer could eventually decide to cut production rates next week rather than readjust polymer prices down as a result of $140/bbl crude.
Paraxylene (PX) markets were quiet, given slack demand among end-users due to squeezed margins. PX prices closed on a bearish tone at $1,615-1,630/tonne CFR Taiwan yesterday, with no signs of a trend reversal in early trades on Friday.
The trend in crude oil pricing is important but ultimately we need to see the real demand and supply situation too, said a Singapore-based aromatics trader.
As of now, it s uncertain how the markets will move; one day it s down, the next day it s up so very volatile and in such cases, it d be natural for most of us to adopt a wait-and-see [attitude], especially it s the end of the week , said a Korean producer of aromatics which also trades actively in the spot market.
