arostradeflowreport july 16 2014

PYGAS, BENZENE, AND STYRENE:

Summary: After starting the month off well, import volumes into the US could be stifled in H2 August and September as

spot prices in the USG moved notable lower. North American supply had improved and downstream demand from

styrene was limited as spot prices in North America were relatively high and it was difficult to move styrene into other

regions. July spot values closed Wednesday at $1,468/mt, down near $72/mt week on week. The backwardation from

July to August narrowed to $36/mt while September was at a $24 discount to August.

ARRIVED

Stolt Ami – arrived at the Port of Houston on July 7 carrying roughly 5,300 metric tons of benzene for one party. The

vessel cast off from the Aratu, Brazil in mid-June.

EN ROUTE:

The vessel Intrepid Seahawk, said to be loaded with 12,000 metric tons of benzene, was last seen headed west-at 11.9

knots just west of the North African coast. The vessel cast off from the Port of Yanbu on June 30 and was destined for

the SW Pass in the US Gulf with an ETA of July 28. (Last update seen at 3:05 p.m on July 16.)

The vessel Celsius Mayfair, reportedly fixed with 8,000 metric tons of benzene, was last seen moving north-northwest at

13.1 knots off the coast of Brazil. The vessel was expected to make its way to the Houston with an ETA of July 30. (Last

update seen at 3:08 p.m. on July 16.)

AROMATICS TRADE FLOW REPORT July 17, 2014 Vol 1, Issue 9

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.

The vessel Sichem Hawk, heard to be loaded with 16,000 metric tons of benzene, was last seen moving west in the

North Atlantic Ocean at 14.6 knots. The vessel was heade toward the Port of Houston with an ETA of July 29. (Last


The vessel MT Carla Maersk, expected to load 9,000 metric tons of benzene , was last seen moving north-northeast at

7.5 knots off the Brazilian coast. The vessel was expected to load in H2 July and then make its way to the US Gulf. (Last


The vessel Chembulk VirginGorda, loaded with two 5,000 metric tons parcels of styrene, was last seen moving east in

the North Pacific Ocean at 12,2 knots. The vessel was slated to arrive at the Port of Yokohama on July 24 and then make

its way to China. (Last update seen at 3:31p.m. on July 16.)




The vessel FPMC 30, loaded with 6,000 metric tons of styrene, was last seen moored near Colon, Panama. The vessel

cast off from Corpus Christi and expected to head toward Taiwan after leaving the Port of Colon. (Last update seen at

3:38 p.m. on July 16.)

The vessel Bum Shin, loaded with 9,000 metric tons of styrene, was last seen east of the Florida cost moving east-

northeast at 13.8 knots. After casting off from Point Comfort, the vessel was expected to arrive in the UK on July 25

before making its way to the Mediterranean. (Last update seen 3:46 p.m. on July 16.)

TOLUENE AND XYLENES

Summary: Toluene and xylene prices continued diverge this week with mixed xylenes values falling to as low as

$1,197/mt as market participants failed to reach an agreement on the July MX contract. Meanwhile toluene values held

firm, assessed at $1,280/mt Thursday, supported in part by a stronger toluene-PX spread, sources said. US spot toluene

prices held firm this week near $1,280/mt, roughly $100/mt higher than both European and Asian toluene spot prices.

EN ROUTE:

The Chembulk Lindy Alice, heard loaded with 10,000 metric tons of PX, was last seen moored at Houston. The vessel

was slated to load in mid-July and make its way from Houston to China. (Last signal seen 6:02 p.m. on July 16.)




Maritime Vanessa – the vessel, said to be fixed with 5,000 metric tons of mixed xylenes, was last seen in the Taiwan

straight moving south-southeast at 8 knots. The vessel cast off from Balboa, Panama and was slated to arrive at the Port

of MaiLiao on July 16. (Last signal seen at 5:02 p.m. on July 16.)

The Siteam Adventurer – heard to be loaded at the US Gulf (either Houston or Baton Rouge) with 10,000 metric tons of

paraxylene, was last seen moving west-southwest at 12.3 knots in the North Pacific Ocean. The vessel was expected to

arrive at Ulsan on July 25 before making its way to Taiwan/China, sources said. (Last signal seen at 5:07 p.m. on July 16.)

The vessel UACC Marah, loaded with 10-15,000 metric tons of PX, was last in the Korea Straight, moving west at 12.3

knots. The vessel, which was heard loaded in Freeport, cast off from Balboa, Panama and was slated to arrive at the

Port of Yosu on July 17. (Last signal seen at 5:19 p.m. on July 16.)




August spot DDP benzene prices were near

$1,432/mt Wednesday as FOB Korea spot

values were at $1,335.5 /mt. The Korea-US

spread stood at $35.50/mt. European benzene

values were estimated at near $1,465/mt.

July spot benzene prices stood roughly $23

below the 5-day moving average of $1,492 and

nearly $58 below the 20-day moving average

at $1,526/mt.

Spot toluene values closed stronger

Wednesday at $1,283/mt FOB USG but were

down slightly week on week. Spot mixed

xylene traded Wednesday at $1,206/mt. US

MX values held a discount $26.50 to Asian

values while US toluene was nearly $100

higher than Asian toluene.

US spot paraxylene values moved higher,

tracing Asian prices which were bolstered by

supply issues. Prices were assessed

Wednesday at $1,315/mt FOB USGC, roughly

$122/mt below Asia and near $40 above

Europe.

Margins for TDP operators fell victim to

declining benzene and mixed xylene prices and

were estimated this week at -$8.50/mt, down

$25 on the week.

Styrene prices was slightly lower with US spot

values resisting declines in feedstock benzene.

Spot was talked near $1,638/mt FOB USG as

trade was thin as prices were on par with

China and above European and Korean values.

The styrene-benzene spread widened this

week, gaining just under $80 on the week to

close at $170/mt Wednesday.

Margins for styrene producers on a spot basis

remained in negative territory, estimated at -

$17.50/mt, roughly level on the week.

PRICING AND MARKET DYNAMICS

-$50.00

$0.00

$50.00

$100.00

$150.00

$200.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

$1,800.00

3-M

ar-1

4

10

-Mar

-14

17

-Mar

-14

24

-Mar

-14

31

-Mar

-14

7-A

pr-

14

14

-Ap

r-1

4

22

-Ap

r-1

4

29

-Ap

r-1

4

7-M

ay-1

4

15

-May

-14

22

-May

-14

30

-May

-14

6-J

un

-14

13

-Ju

n-1

4

20

-Ju

n-1

4

27

-Ju

n-1

4

7-J

ul-

14

14

-Ju

l-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

7-M

ar-1

4

13

-Mar

-14

19

-Mar

-14

25

-Mar

-14

31

-Mar

-14

4-A

pr-

14

10

-Ap

r-1

4

16

-Ap

r-1

4

23

-Ap

r-1

4

29

-Ap

r-1

4

6-M

ay-1

4

12

-May

-14

16

-May

-14

22

-May

-14

29

-May

-14

4-J

un

-14

10

-Ju

n-1

4

16

-Ju

n-1

4

20

-Ju

n-1

4

26

-Ju

n-1

4

2-J

ul-

14

8-J

ul-

14

14

-Ju

l-1

4

SPOT BZ M1 DDP USG 5-DAY MOV AVE 20-DAY MOV AVE

-$40.00-$20.00

$0.00$20.00$40.00$60.00$80.00

$100.00$120.00$140.00

3-M

ar-1

4

7-M

ar-1

4

13

-Mar

-14

19

-Mar

-14

25

-Mar

-14

31

-Mar

-15

4-A

pr-

14

10

-Ap

r-1

4

16

-Ap

r-1

4

23

-Ap

r-1

4

29

-Ap

r-1

4

6-M

ay-1

4

12

-May

-14

16

-May

-14

22

-May

-14

29

-May

-14

4-J

un

-14

10

-Ju

n-1

4

16

-Ju

n-1

4

20

-Ju

n-1

4

26

-Ju

n-1

4

2-J

ul-

14

9-J

ul-

14

15

-Ju

l-1

4

US TDP Margins $/mt

-$50.00$0.00$50.00$100.00$150.00$200.00$250.00

60.00

65.00

70.00

75.00

80.00

11

-Mar

-14

18

-Mar

-14

25

-Mar

-14

1-A

pr-

14

8-A

pr-

14

15

-Ap

r-1

4

23

-Ap

r-1

4

30

-Ap

r-1

4

8-M

ay-1

4

15

-May

-14

22

-May

-14

30

-May

-14

6-J

un

-14

13

-Ju

n-1

4

20

-Ju

n-1

4

27

-Ju

n-1

4

7-J

ul-

14

14

-Ju

l-1

4

Styrene production costs Styrene spot value

SM Margins $/mt




NOTES:

** Benzene pricing courtesy of the Petrochemical

Wire
















FREIGHT RATES – 10,000 MT

ULSAN – HOUSTON: $56-60/MT

HOUSTON – MAIN PORT FE: $50-54/MT

HOUSTON – CHINA: $51-55/MT

EDITORS CONTACT DETAILS

Kevin Allen

Email: [email protected]

Phone: 713.344.3690

Yahoo: tpsusaros




H1 May - $1,333.50

H2 May - $1,336.38

H1 June – $1,369.42

H2 June – $1,527.59

H1 Jul MTD – $1,519.07

US DDP SPOT BENZENE AVERAGES

mailto:[email protected]

arostradeflowreport july 16 2014

Business