Paraxylene prices in Asia fell to their lowest level in seven years Monday after crude oil continued to weaken amid bearish fundamentals, Platts data showed.
Both PX benchmarks fell $15/mt from Friday to $709.67/mt FOB Korea and $730.67/mt CFR Taiwan/China Monday. The benchmarks were last lower January 5, 2009, at $687.50/mt FOB Korea and January 6, 2009, at $726/mt CFR Taiwan/China.
PX prices closely track crude oil and naphtha prices.
Asian naphtha has tumbled $47.25/mt since December 31 to $361.75/mt CFR Japan on Monday.
Over the same period, PX fell only $35.83/mt, meaning production margins have widened to $347.92/mt -- up $11.42/mt in 2016 so far, well above the $280-$300/mt typically required for profitable production by integrated producers.
"I think [the widening PX-naphtha spread] was driven by a naphtha crack correction, relatively firm purified terephthalic acid -- both physical and futures -- as well as polyester, and [end-users'] strong buying [of PX]," a trader said.
February ICE Brent crude futures slumped $1.62/b from Friday to $32.61/b at 4:30 pm Singapore time (0830 GMT) Monday.
