The FOB Korea price for H1 November shot up $13 to $812/mt, supported by bullish sentiment for paraxylene in the fourth quarter. Asian PX marched up $17 to $960/mt FOB Korea for first half November, with a $10 contango from H2 September. MX though was backwardated by $19 from H2 September through H1 November.
On Wednesday US buy interest for Sept at 248 cents/gal ($744/mt) and sell ideas at 254 cents/gal ($770/mt) FOB USG. Assuming one could transact at 250 cents/gal and secure $50 freight from the US to Korea, the arb was workable as the landed price would be around $807.50/mt.
However some did not believe a seller today would be willing to come down to those levels given an almost 4 cent rebound in October RBOB futures trading on the NYMEX.
China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html
