PX price driven up by active buying – ChinaTexnet.com
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PX price driven up by active buying

2023-08-31 09:49:24 CCFGroup

CFR China PX price spiked on Aug 10, up $22/mt from Aug 8. During the same period, Brent crude oil futures advanced $2.6/bbl, equivalent to $20/mt; and naphtha price gained $16/mt. The rise in PX price was largely consistent with that in feedstock.

 

However, compared to relatively weak PTA futures, PX remained strong. Trading in PX spot market was active with 6 deals concluded on Aug 10. South Korea's GS bought 2 deals of Asia-origin Oct goods at $1080/mt CFR. Japan's Mitsui and Mitsubishi were active, each buying 2 deals of Asia-origin Sep goods, at $1090/mt, $1090/mt, $1091/mt and $1092/mt CFR respectively.

 

Behind the active buying from Japan's traders, the reason may lie in future maintenance plans of PX plants in Japan. Plant maintenance may lead to reduction of local supply, and suppliers need to purchase from spot market to ensure the fulfillment of contracts.

 

Company Country PX capacity (kt/yr) Turnaround
ENEOS Japan 190 Mid-May till early Jul, restart delayed to end-Aug
ENEOS Japan 870 Sep-Oct, 2 and a half months
ENEOS Japan 290 Oct-Dec
Idemitsu Japan 210 Sep, a half month
NSRP Vietnam 700 Aug 25, 2 months

 

Japanese company occupies some shares of NSRP refinery in Vietnam, and thus the maintenance would also affect PX supply of the relevant company.

 

Apart from ENEOS' 190kt/yr PX plant, whose restart got postponed unexpectedly, other plants would undergo scheduled maintenance. Typically, if companies need to make up for the supply loss brought by plant maintenance, they would restock in advance. It can be seen from the pace of buying activities that companies purchased intensively in Aug, with the port and laycan declarations for Sep-delivery PX cargoes due to be concluded in two weeks. And trading volume has increased obviously this week. In fact, companies indeed usually purchase when it is approaching the declarations, and reduce the purchasing volume after the declaration (15th of every month). It needs to be seen whether the buying pace will remain unchanged.

 

Date of trade Seller Buyers Trading price ($/mt) Delivery
11-Apr-23 -- mitsui 1134 May
12-Apr-23 -- mitsubishi 1142 May
13-Apr-23 -- mitsubishi 1153 May
8-May-23 -- mitsubishi 1046 June
9-May-23 -- mitsui 1028 June
10-May-23 -- mitsui 1027 June
11-May-23 -- mitsubishi 1015 June
12-May-23 -- mitsubishi 980 June
12-May-23 -- mitsui 985 June
9-Jun-23 -- mitsui 1002 July
12-Jun-23 -- mitsubishi 986 July
13-Jun-23 -- mitsubishi 1000 July
3-Jul-23 -- mitsui 990 August
7-Jul-23 -- mitsui 1003 August
10-Jul-23 -- mitsui 1005 August
12-Jul-23 -- mitsubishi 1023 August
26-Jul-23 -- mitsubishi 1089 August
2-Aug-23 -- mitsubishi 1085 September
3-Aug-23 -- mitsubishi 1057 September
4-Aug-23 -- mitsubishi 1056 September
4-Aug-23 -- mitsubishi 1060 September
7-Aug-23 -- mitsui 1051 September
8-Aug-23 -- mitsui 1058 September
8-Aug-23 -- mitsubishi 1067 September
8-Aug-23 -- mitsubishi 1070 September
8-Aug-23 -- mitsui 1070 September
10-Aug-23 -- mitsui 1090 September
10-Aug-23 -- mitsui 1090 September
10-Aug-23 -- mitsubishi 1091 September
10-Aug-23 -- mitsubishi 1092 September

 

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