Asian PX prices rise to 8-year high

Recently, data released by S&P Global Commodity Insights showed that on June 7, Asian paraxylene (PX) prices surged to the highest level in 8 years, driven by tight supply, the opening of the Asia-US arbitrage window and strong demand, while profit margins. Improved to the best level in more than 3 years.

Data show that on June 7, the price of paraxylene in China soared by US$65.83/ton (cost plus freight, CFR), rising by US$194.16/ton to US$1,484.33/ton week-on-week, the highest level since July 2014. Standard & Poor's said that the price of PX has risen faster than the raw material naphtha, and it is also the first time in more than three years that it has exceeded the US$600/ton level. Usually, the price difference between the two is maintained at US$220-280/ton to break even. The rise in Asian PX prices is due to an upward trend in the Asian aromatics market due to the opening of the arbitrage window between Asia and the United States and strong demand for gasoline blending components.

S&P Global Commodity Insights said that while the U.S. PX market has largely stagnated, lower productivity and tight supply of raw materials have prompted participants to seek PX imports from Asia since April. The trend continued in May, given the sharp drop in U.S. aromatics production, the report said. In Asia, U.S. dollar-denominated PX supplies have tightened further since May as some major producers plan overhauls, S&P said, with PX supplies tight since May, while refinery side PX producers prioritized producing gasoline over aromatics. . Prices will remain stable in July and supply is expected to resume in August when multiple units are overhauled, multiple sources said. Good profit margins for PX producers in mainland China may push up run rates.