arostradeflowreport 6.19.14

BENZENE:

Summary: While trade activity increased on the week, reported shipping activity remained muted. Thus far in June,

roughly 33,000 metric tons were reported to have arrived in the US Gulf Coast. Activity was expected to increase

however as rising prices in the US reopened the arb between Korea and the USG. June and July spot values were higher

on the week with trades seen at 482 and 480 cents/gal DDP USG.

ARRIVED

Reinhold Schulte – carrying 15,000 metric tons of benzene for at least three parties, arrived at the Port of Baton Rouges

on June 8. The vessel cast of from the Port of Mailiao, Taiwan on May 3.

Formosa Thirteen – carrying roughly 18,000 metric tons of benzene for three different parties, arrived at Houston on

June 17 and was last seen moored at the Port of Houston on June 18. The vessel cast off from the Port of Nagoya on

May 1.

EN ROUTE:

The vessel Cavatina, said to be carrying between 15,000-21,000 metric tons of benzene, was last seen off of the west

coast of Nicaragua moving south-southeast at 14.2 knots. The vessel cast off from Nagoya Japan on May 28 and was

expected to arrive at Balboa, Panama on June 20. (Last signal seen at 6:45 a.m. on June 18.)

AROMATICS TRADE FLOW REPORT June 19, 2014 Vol 1, Issue 5

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.

TOLUENE, XYLENES & STYRENE:

Summary: Interest in chemical exports out of the US increased this week, most notably among styrene and xylenes.

Styrene prices across the globe we moving higher with several inquiries to move material from the USG to the Far East.

On a spot basis, the arbitrage window appeared closed but given that producers are seeing styrene margins estimated

near $130 on lower benzene and ethylene contracts, the prospect of moving material was not out of the realm of

possibility for producers or those who had been holding material in inventory. Mixed xylene quotes were also heard this

week with some fixtures reported though that could be a short-lived endeavor as MX prices have surged in recent days,

driven by an outage at Citgo’s Lake Charles refinery, sources said. PX prices were higher on increased Asian demand and

rising feedstocks but reported activity was nominal.

ARRIVED:

Bow Star – the vessel, carrying approximately 5,700 metric tons of toluene, arrived at the Port of Richmond, California

on June 2 after setting off from Ulsan, Korea.

LOADED/LOADING:

Ioannis I – the vessel, said to be fixed with approximately 10,000 metric tons of paraxylene, was last seen in the North

Pacific Ocean moving west-northwest at 13.8 knots. The vessel initial departed from the Port of Houston and cast off

from Balboa, Panama on June 5. It was slated to arrive in the Port of Mai-Liao on July 2. (Last signal seen at 12:56 a.m.

on

June

18.

UACC Marah – the vessel was last seen moored just outside of the Port of Colon, Panama. The tanker, loaded with 10-

15,000 metric tons of PX, cast off from Freeport, Texas on June 11 and was destined for the Far East, sources said. (Last

signal seen at 12:14 a.m. on June 19.)




The Siteam Adventurer – heard to be loaded with 10,000 metric tons of paraxylene, was heard loaded in H1 June at

Baytown and destined for Taiwan/China. The vessel was last seen in the Gulf of Mexico moving south-southeast at 13.2

knots. The vessel was expected to arrive at Cristobal on June 21. (Last signal seen at 4:15 a.m. on June 19.)

Chembulk VirginGorda – was last seen headed toward the Port of Houston after casting off from Port Arthur on June 18.

The vessel was expected to load an estimated 15,000 metric tons of styrene as well as a 10,000 barrels of mixed xylenes.

The parcels were said to be destined for the Far East. (Last update seen at 10:40 a.m on June 19.)

Jo Ilex – was said to be fixed with 10,000 metric tons of styrene, loading in mid-June from the US Gulf to Europe/ARA.

The vessel was last seen anchored off the cost of Houston after casting off from Texas City. (Last signal seen at 10:47

a.m. on June 19.)




The spread between FOB Korea and DDP M2

US flipped back into positive territory on the

week amid rising prices in the US. FOB Korea

benzene posted gained $24 Thursday to

$1,332.50 while US M2 DDP values were near

$1,438/mt.

Spot benzene prices on a DDP USG basis were

well above the 5 and 20-day moving averages

which were 473.83 and 454.43 cents/gal

respectively.

Toluene and xylene prices continued to rise on

tight supply and rising blend values. June

toluene traded at 401 cents/gal Wednesday

while mixed xylenes were last bid at 400

cents/gal. Toluene and MX blend values were

estimated at 402 and 418 cents/gal.

Margins for HDA and TDP operators were

lower on rising toluene values. HDA margins

were estimated at $27.94 this week while TDP

margins fell to $44.07/mt.

Spot styrene prices gained this week, talked

slightly above 72 cents/lb FOB USG amid

continued tight supply and increased

European demand. July spot was talked

notionally on par with June.

The styrene to benzene spread was lower on

the week, estimated at $150.50/mt.

The US PX-MX spread widened slightly on the

week as MX prices remained strong. The

spread was estimated at $50/mt.

PRICING AND MARKET DYNAMICS







-$40.00

-$20.00

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$1,050.00$1,100.00$1,150.00$1,200.00$1,250.00$1,300.00$1,350.00$1,400.00$1,450.00$1,500.00

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

19

-May

-14

23

-May

-14

30

-May

-14

5-J

un

-14

11

-Ju

n-1

4

17

-Ju

n-1

4

US BZ DDP M2 BZ FOB KOREA SPREAD

410.00

420.00

430.00

440.00

450.00

460.00

470.00

480.00

490.00

500.00

3-M

ar-1

4

6-M

ar-1

4

11

-Mar

-14

14

-Mar

-14

19

-Mar

-14

24

-Mar

-14

27

-Mar

-14

1-A

pr-

14

4-A

pr-

14

9-A

pr-

14

14

-Ap

r-1

4

17

-Ap

r-1

4

23

-Ap

r-1

4

28

-Ap

r-1

4

2-M

ay-1

4

7-M

ay-1

4

12

-May

-14

15

-May

-14

20

-May

-14

23

-May

-14

29

-May

-14

3-J

un

-14

6-J

un

-14

11

-Ju

n-1

4

16

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4

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

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$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

TDP Margins $/mt HDA Margins $/mt

H2 March Spot Benzene Average 482.458

H1 April Spot Benzene Average 475.000

H2 April Spot Benzene Average 451.700

H1 May Spot Benzene Average 446.050

H2 May Spot Benzene Average 443.100

H1 June Spot BZ Average 458.410




US DDP SPOT BENZENE AVERAGES

US Gulf to East Asia main ports: $50-54/mt.

US Gulf to China main ports: $51-55/mt.

US Gulf to Mumbai: $77-81mt

Ulsan to US Gulf: $59-63/mt




FREIGHT RATES – 10,000 mt parcels

arostradeflowreport 6.19.14

Data & Analytics