Transcript
Page 1: Petchem Standard's Aromatics Trade Flow Report

LONDON SINGAPORE HOUSTON

PAGE 1. BENZENE AND

PYGAS FIXTURES

PAGE 2. STYRENE

MONOMER

PAGE 3. XYLENES AND

TOLUENE

PAGE 4. PRICING AND

MARKET DYNAMICS

PAGE 5: FREIGHT RATES

AND HALF MONTH

SPOT PRICE AVERAGES

OCTOBER 19, 2014 VOLUME 1, ISSUE 21

THE AROMATICS TRADE FLOW REPORT

Page 2: Petchem Standard's Aromatics Trade Flow Report

BENZENE/PYGAS:

SUMMARY: Benzene prices plummeted this week, alongside other aromatics and the energy complex as a whole. M2 DDP USG

spot prices fell by near $80/mt this week as buyers stepped back. October fixtures were few and while there was talk of working FOB

Korea-USGC parcels, sources reported no new volumes fixed this week. Thus far import volumes for the first half of the month were

estimated at just over 35,500 metric tons however at least one vessel heard to be carrying at least 20,000 was seen near the

Enterprise Terminal late in the week. A second vessel thought to be carrying 18,000 metric tons of benzene was seen in the Houston

Ship Channel on Friday morning while a third vessel carrying some 20,000 metric tons was seen near Balboa, Panama this week,

destined for US shores before the end of the month

Demand from the styrene segment was slightly improved with recent buy interest from Europe but remained lackluster overall with

at least two US producers heard to be offline during the month of October. Meanwhile, spot DDP values in the US cratered this

week, finishing the week at near $1,163/mt, down roughly $63/mt week on week. Prices in Europe held firm as October and

November finished the week on either side of $1,250 and $1,220/mt respectively. The TPS FOB Korea marker was at a $52/mt

discount to M2 US DDP prices.

ARRIVED: The Siteam Adventurer, carrying an estimated 18,000 metric tons of benzene, was last seen moored near the LBC

terminal at Bayport on Friday. Additionally the vessel FPMC 24, thought to be carrying at least 25,000 metric tons of benzene, was

last seen in the Gulf of Mexico between the ports of Corpus Christi and Houston.

EN ROUTE:

The vessel FPMC 30, heard loaded with at least 25,000 metric tons of benzene, was last seen in the Caribbean Sean just outside of

the Panama Canal. The vessel, which cast off from Korea in early September, was expected to arrive at the Port of Houston on

October 27. (Last update seen 3:22 p.m. on October 17.)

AROMATICS TRADE FLOW REPORT October 19, 2014 - Vol 1, Issue 21

Qty Load Discharge Laycan Ship

20-25,000 Korea USGC H1 Sep FPMC 30

- Korea USGC H1 Sep Maritime Suzanne

32,000 Ulsan/Yokohama USGC Mid-Sep Atlantic Canyon

12,000 Ulsan USGC H1 Sep NA

18,000 Ulsan USGC H1 Sep Siteam Adventurer

6,000 Ulsan LMR Sep 1-10 NA

10,000 Houston Gebze End Sep Stolt Helluland

5,000 USGC ARA Oct 1-10 Bow Spring

25-30,000 Ulsan USGC Arrival mid-Oct FPMC 24

PYGAS

Qty Load Discharge Laycan Ship

5,000 Brindisi USGC Sep 20-30 MT Basiktas Zealand

5,000 Priolo Houston Sep 17-20 MT CB Savannah

9,500 ARA USGC Sep 10-15 CB Bulldog

11,000 ARA USGC End Sep Odfjell - NA

10,000 Antwerp Houston End Sep Bow Sagami

10,000 Rotterdam Houston Early Oct Shamrock Jupiter

Copyright © The Petrochemical Standard 2014 | [email protected] |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.

Page 3: Petchem Standard's Aromatics Trade Flow Report

STYRENE MONOMER:

SUMMARY: Styrene continued to see healthy buy interest from both Europe and Brazil this week with trades heard above

$1,521/mt FOB USG. There was little change in supply side conditions as two US styrene producers remained offline. Styrolution and

Westlake Chemical were heard offline through the month of October though confirmation was not immediately available. Given the

combined capacity of the two plants, the outages took roughly 80,000 metric tons of material out of the market during October.

Styrene remained among the more resilient of aromatics as demand did not subside this week. Midweek activity saw four trading

houses quoting lots of between 3,000-6,000 metric tons for November loading dates from the USGC to Santos. Unigel was said to be

the buyer though confirmation was not immediately available and it was not immediately clear what parcels, if any, were fixed.

Sources also cited steady demand in Europe following Shell’s production issues at Moerdijk. Some participants said that the

company had announced an allocation but confirmation was not immediately available. US sellers have moved more than 60,000

metric tons of styrene out of the US since H2 September with all but 10,000 metric tons destined for Europe.

US spot values closed the week talked near $1,520/mt on an FOB USG basis this week while production costs were estimated at just

under $1,433/mt. In Europe, prompt styrene values were last heard at near $1,620/mt while November spot values were heard

closer to $1,575/mt. Asian styrene monomer prices were steeply discounted to the FOB USG price with the TPS FOB Korea and CFR

China markers closing Friday’s session at $1,407 and $1,460/mt respectively.

ARRIVED: The vessel Bo Cedar, heard to be carrying roughly 15,000 metric tons of styrene was last seen moored at the Port of

Antwerp. The vessel was said to have cast off from the Port of Houston in late September.

The Chem Venus, heard to be loaded with 4,000 metric tons of styrene was last seen near the Port of Antwerp Friday. The vessel

cast of from Texas City on September 20, according to data from VesselTracker.

EN ROUTE: The vessel Stolt Basuto, loaded with over 7,000 metric tons of styrene, was last seen moored at the Port of Tarragona.

The vessel cast off from the Port of Houston on September 30 and was ultimately destined for the Port of Gebze. (Last update seen

at 12:04 a.m. on October 17.)

Copyright © The Petrochemical Standard 2014 | [email protected] |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.

Qty Load Discharge Laycan Ship

15,000 Houston ARA End Sep/Early Oct AS Olivia

10,000 Houston ARA End Sep/Early Oct Chem Hydra

15,700 Houston ARA End Sep/Early Oct Bo Cedar

10,000 Houston Far East H1 Oct FPMC 28

5,000 USGC ARA Oct 1-10 Bow Spring

Page 4: Petchem Standard's Aromatics Trade Flow Report

TOLUENE AND XYLENES

SUMMARY: Xylenes fixtures were mostly absent on the week as prices tumbled globally. The TPS CFR Taiwan paraxylene

marker fell $62/mt on the week to finish Friday at $1,048/mt. Meanwhile US paraxylene prices saw declines which

outpaced falling Asian values, down $90 to finish the week at $990/mt FOB USG. Following the outage at BP’s Cooper

River PTA facility last month, US xylenes prices have seen thin demand and have largely been at the whim of Asian

pricing, an ominous sign given that the TPS FOB Korea marker has fallen nearly $180/mt in October. Downstream PTA

prices on a CFR China basis have put additional pressure on Asian xylenes, declining near $120/mt since the beginning of

October.

There were no new mixed xylenes loadings reported this week. Sources talked of potential fixtures however

confirmation was unavailable at time of publication. Earlier in the month, a 5,000 metric ton parcel was heard imported

from Brazil while at least two parcels were still on the water moving east but new deals were few amid a xylenes pricing

freefall.

US MX prices were just above $980/mt on an FOB USG basis, nearly $100 above the TPS FOB Korea marker and over $75

above the TPS CFR China marker. European prices were talked at a slight premium to US values this week.

Toluene values in the US were slightly higher on the week, finishing Friday’s session at $988/mt, down over $120 on the week. FOB

Korea toluene was discounted to the US by approximately $30/mt while European toluene was talked notionally Friday on par with

US spot prices.

EN ROUTE: The vessel Fairchem Mustang, loaded with 10,000 metric tons of paraxylene, was expected to load in H2 October from

Houston to Suape.

The vessel Nave Universe, heard loaded with 10,000 mt of MX, was last seen in the North Pacific Ocean headed east at 14.8 knots.

The ship loaded in Houston and was heard destined for Taiwan, sources said. (Nave Universe: Last update seen at 7:38 a.m. on

October 19.)

Copyright © The Petrochemical Standard 2014 | [email protected] |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.

Copyright © The Petrochemical Standard 2014 | [email protected] |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.

Copyright © The Petrochemical Standard 2014 | [email protected] |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.

Copyright © The Petrochemical Standard 2014 | [email protected] |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.

PX

10,000 US Gulf Taiwan/China H2 Aug Beatrice

10,000 Texas City NE Asia H2 Aug UACC Masafi

20,000 Houston Ningbo/Zhuhai H2 Aug Sichem Hawk

7,000 US Gulf Brazil Mid-Sep Stolt Ocelot

10,000 Gonfreville Charleston Sep 20-30 Harbour Legend

10,000 Houston China End-Sep Clarice

10,000 Houston Suape Oct 20-30 Fairchem Mustang

Qty Load Discharge Laycan Ship

5,000 Houston Ulsan H1 Aug Siteam Explorer

10,000 Houston China Mid-Aug Bow Sirius

10,000 Corpus Christi Korea End Aug Stolt

10,000 Houston Taiwan Sep 1-10 Nave Universe

Page 5: Petchem Standard's Aromatics Trade Flow Report

PRICING AND MARKET DYNAMICS

US M2 DDP spot benzene prices finished Friday at

$1,163/mt, down over $60 on the week. M2 prices

fell sharply early in the week however showed

some life towards week’s end. European prices

were talked north of $,1200/mt this week while

FOB Korea values were weaker as the TPS FOB

Korea marker fell near $75 on the week to close

Friday at $1,108/mt.

The FOB Korea-US M2 DDP spread flipped into

negative territory amid falling prices and closed

Friday at -$7.00/mt, assuming a freight rate of

$62/mt. The spread fell $23 on the week.

US M1 DDP spot benzene prices were virtually on

level with the 5-day moving average of $1,164.50

and near $66 below the 20 day moving average The

M1 spot price was at near parity with the 60-day

moving average.

Spot styrene closed the week higher on increased

buy interest from Brazil and Europe. Oct US spot

FOB values were near $1,524.50/mt Friday, while

November near $1,640/mt. Asian SM prices

finished the week lower with the TPS FOB Korea

and CFR China markers at $1,407 and $1,460/mt

respectively.

The gains in styrene, coupled with sharp declines in

benzene put the as high as $358.50/mt, up almost

$60/mt week on week.

US toluene spot prices fell nearly $120/mt this

week, closing Friday at $988/mt. The M1 FOB USG

price was above the TPS marker which closed at

$954/mt FOB Korea Friday while European prices

were talked mostly even to US values.

The US benzene-toluene spread widened by over

$70 on the week to finish Friday at $178/mt.

US xylenes were weaker with the PX M1 FOB USG

price closing the week below the $1,000 mt/mark

as demand domestically was week and Asia prices

fell. The TPS CFR Taiwan marker finished the week

at $904/mt. European PX prices were talked

notionally in a wide range with a midpoint of near

$1,030/mt.

The US PX-MX spread closed at $11.50/mt.

Copyright © The Petrochemical Standard 2014 | [email protected] |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.

-$100.00

-$50.00

$0.00

$50.00

$100.00

$150.00

$200.00

$0.00$200.00$400.00$600.00$800.00

$1,000.00$1,200.00$1,400.00$1,600.00$1,800.00

3-M

ar-1

4

13

-Mar

-14

25

-Mar

-14

4-A

pr-

14

16

-Ap

r-1

4

29

-Ap

r-1

4

12

-May

-14

23

-May

-14

5-J

un

-14

17

-Ju

n-1

4

27

-Ju

n-1

4

10

-Ju

l-1

4

22

-Ju

l-1

4

1-A

ug-

14

13

-Au

g-1

4

25

-Au

g-1

4

5-S

ep

-14

17

-Se

p-1

4

29

-Se

p-1

4

9-O

ct-1

4

US BZ DDP M2 BZ FOB KOREA SPREAD

300.00

350.00

400.00

450.00

500.00

550.00

3-M

ar-1

4

12

-Mar

-14

21

-Mar

-14

1-A

pr-

14

10

-Ap

r-1

4

22

-Ap

r-1

4

2-M

ay-1

4

13

-May

-14

22

-May

-14

3-J

un

-14

12

-Ju

n-1

4

23

-Ju

n-1

4

2-J

ul-

14

11

-Ju

l-1

4

22

-Ju

l-1

4

31

-Ju

l-1

4

11

-Au

g-1

4

20

-Au

g-1

4

29

-Au

g-1

4

10

-Se

p-1

4

19

-Se

p-1

4

30

-Se

p-1

4

9-O

ct-1

4

SPOT BZ M1 DDP USG 5-DAY Ma 20-DAY MA

$0.00$50.00

$100.00$150.00$200.00$250.00$300.00$350.00$400.00$450.00

14

-Mar

-14

25

-Mar

-14

3-A

pr-

14

14

-Ap

r-1

4

24

-Ap

r-1

4

6-M

ay-1

4

15

-May

-14

27

-May

-14

5-J

un

-14

16

-Ju

n-1

4

25

-Ju

n-1

4

7-J

ul-

14

16

-Ju

l-1

4

25

-Ju

l-1

4

5-A

ug-

14

14

-Au

g-1

4

25

-Au

g-1

4

4-S

ep

-14

15

-Se

p-1

4

24

-Se

p-1

4

3-O

ct-1

4

14

-Oct

-14

BZ-Tol spread

-50.00

0.00

50.00

100.00

150.00

200.00

250.00

18

-Mar

-14

26

-Mar

-14

3-A

pr-

14

11

-Ap

r-1

42

2-A

pr-

14

30

-Ap

r-1

49

-May

-14

19

-May

-14

28

-May

-14

5-J

un

-14

13

-Ju

n-1

42

3-J

un

-14

1-J

ul-

14

9-J

ul-

14

17

-Ju

l-1

42

5-J

ul-

14

4-A

ug-

14

12

-Au

g-1

42

0-A

ug-

14

28

-Au

g-1

48

-Se

p-1

41

6-S

ep

-14

24

-Se

p-1

42

-Oct

-14

10

-Oct

-14

US Spot PX-MX Spread

Page 6: Petchem Standard's Aromatics Trade Flow Report

FREIGHT RATES – 10,000 MT FREIGHT RATES – 5,000 MT

ULSAN – HOUSTON: $60-64/MT ULSAN – HOUSTON: $63-68/MT

HOUSTON – MAIN PORT FE: $58-62/MT HOUSTON – MAIN PORT FE: $62-66/MT

HOUSTON – CHINA: $62-66/MT HOUSTON – CHINA: $66-70/MT

HOUSTON – NORTHWEST EUROPE $42-46/MT HOUSTON – NORTHWEST EUROPE $45-49/MT

HA LF MONTH AVERAGES

US SPOT BZ DDP USG US SPOT SM FOB USG US SPOT TOLUENE FOB USG

H1 Aug – $1,475.56 H1 Aug – $1,591.94 H1 Aug – $1,133.92

H2 Aug – $1,436.00 H2 Aug – $1,567.00 H2 Aug – $1,136.50

H1 Sep - $1,303.54 H1 Sep - $1,512.57 H1 Sep - $1,158. 24

H2 Sep - $1,268.30 H2 Sep - $1,489.21 H2 Sep – $1,084.46

H1 Oct - $1,243.50 H1 Oct - $1,500.25 H1 Oct - $1,113.00

H2 Oct MTD - $1,152.65 H2 Oct MTD - $1,506.40 H2 Oct MTD - $988.00

US SPOT MX FOB USG US SPOT PX FOB USG

H1 Aug – $1,129.10 H1 Aug – $1,306.00

H2 Aug – $1,086.50 H2 Aug – $1,253.00

H1 Sep - $1,060.16 H1 Sep - $1,225.50

H2 Sep - $1,090.80 H2 Sep – $1,185.90

H1 Oct - $1,072.50 H1 Oct - $1,133.75

H2 Oct MTD - $980.20 H2 Oct MTD - $1,005.00

EDITORS CONTACT DETAILS

Kevin Allen

Email: [email protected]

Phone: 713.344.3690

Yahoo: tpsusaros

* Vessel photos and information courtesy of Vesseltracker

Copyright © The Petrochemical Standard 2014 | [email protected] |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.


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