Paraxylene export opportunities from the Amsterdam-Rotterdam-Antwerp hub to the US are limited, as the arbitrage between the two regions is narrow and demand in the US is slowing, according to market sources this week.
Paraxylene on the spot market in Europe is mainly for export, either to Asia or the US. Sources said this week that any exports would be to Asia instead of the US, as demand is slowing on the other side of the Atlantic.
"There is not much demand in the US at the moment", one source said.
A second source agreed: "There is low demand in the US. Exports will be mainly to Asia."
Other sources reported that the PX market was very quiet this week, with little change in market fundamentals.
The arbitrage between ARA and the US East Coast was also heard to be narrow or closed.
The PX spot price in Europe was assessed at $706/mt FOB ARA Thursday. An offer was heard in the USEC region at $780/mt earlier in the week, with no bids.
Market prices in the US have only seen small movements since then.
Taking a notional price of below $780/mt for USEC and freight of approximately $50/mt to ship 5,000 mt of PX from ARA to USEC, this indicates that the arbitrage is narrow or even closed.
Paraxylene has been pegged at a netback to the Asia price this week by several sources.
The assessment on Thursday was based on a netback to the Asia price. The CFR Taiwan/China H1 December price was assessed on Thursday at $801/mt.
Freight of $95/mt between ARA and Far East Asia was used to calculate the Europe price, assessed at $706/mt FOB ARA Thursday.
