At the beginning of the new year, due to the rise of global oil prices and the growth of market demand, the Asian petrochemical product market has witnessed a new atmosphere in the new year. The market is in a strong trend and usher in a good start.
Benzene prices rose steadily The price of benzene in Asian markets fell to the stage bottom of US$585 to US$595/tonne (FOB Korea) in mid-November 2005. It then began to rebound, and prices have steadily increased recently. This is because in January, the contract price of benzene in the U.S. was 2.46 U.S. dollars per gallon (about 734 U.S. dollars per ton), while Asia-to-United States U.S. freight was in the range of 60 U.S. to 65 U.S. dollars per ton, resulting in arbitrage in Asian and U.S. benzene markets. Opportunities make Asian benzene prices very attractive. However, sellers pointed out that the surplus of benzene production in China and South Korea has reduced the room for price increases in the Asian benzene market. In addition, benzene stocks in Europe and the United States are gradually increasing.
Toluene market starts with bull market
The Asian toluene market started as a bull market at the beginning of the new year. On the morning of January 3, the Asian market’s toluene price rose by US$14/tonne from the closing price on the last trading day in 2005 to US$702.5/tonne (FOB Korea). Since December 1, 2005, the price of toluene in the Asian market has risen by about US$87.5/ton. This increase has mainly come from the firmness of global oil prices and the increase in US gasoline demand from the US Energy Information Administration. At the same time, the new EPA regulations for ultra-low sulfur gasoline have been implemented since January 1, 2006. To meet environmental protection needs, more toluene will be added to US gasoline, which will lead to a reduction in the amount of toluene exported to Asia.
Traders estimate that the current inventory of toluene in eastern China is about 25,000 to 30,000 tons, which is lower than the usual 40,000-ton inventory level. In addition, China’s toluene imports jumped by about 40% to 33,000 tons in November last year, which was the first time since China’s imports of toluene fell in January 2005. This strengthened the market’s expectation that China will actively import toluene in the new year.
Styrene monomer prices rise
Due to the combined effect of strong crude oil market prices, failure of styrene production by Korea's Icheon company, and a decline in China's styrene monomer inventory, the opening price of the Asian styrene monomer market rose by US$25/ton to 1010 on January 3. USD/ton (FOB Korea). In the morning, a transaction of 2,000 tons of styrene monomer cargo shipped in the second half of January was traded at a price of USD 1005/tonne (FOB Korea).
Ethylene and propylene prices are promising Affected by the strong downstream demand and the suspension and overhaul of the 5th cracking unit of Taiwan's CNPC, the prices of ethylene and propylene in the Asian market started to rise at the beginning of the new year. Market media pointed out that since the end of December last year, supply and demand of ethylene and propylene supply in Asian markets have exceeded expectations. The main reason is that Taiwan’s CNPC’s fifth cracker in Kaohsiung should be shut down until mid-January.
The Asian propylene market has shown a strong trend in the past two weeks. On the 3rd of January, the price of propylene rose to US$955/tonne (FOB Korea), which was US$70/ton higher than the previous trading day. Ethylene prices also rose, but the increase was lower than propylene. On January 3, the ethylene price in Northeast Asia rose to US$935/tonne (CFR), which was US$10/tonne higher than the previous trading day. Southeast Asia ethylene price rose US$25/tonne to US$970/tonne (CFR).
Benzene prices rose steadily The price of benzene in Asian markets fell to the stage bottom of US$585 to US$595/tonne (FOB Korea) in mid-November 2005. It then began to rebound, and prices have steadily increased recently. This is because in January, the contract price of benzene in the U.S. was 2.46 U.S. dollars per gallon (about 734 U.S. dollars per ton), while Asia-to-United States U.S. freight was in the range of 60 U.S. to 65 U.S. dollars per ton, resulting in arbitrage in Asian and U.S. benzene markets. Opportunities make Asian benzene prices very attractive. However, sellers pointed out that the surplus of benzene production in China and South Korea has reduced the room for price increases in the Asian benzene market. In addition, benzene stocks in Europe and the United States are gradually increasing.
Toluene market starts with bull market
The Asian toluene market started as a bull market at the beginning of the new year. On the morning of January 3, the Asian market’s toluene price rose by US$14/tonne from the closing price on the last trading day in 2005 to US$702.5/tonne (FOB Korea). Since December 1, 2005, the price of toluene in the Asian market has risen by about US$87.5/ton. This increase has mainly come from the firmness of global oil prices and the increase in US gasoline demand from the US Energy Information Administration. At the same time, the new EPA regulations for ultra-low sulfur gasoline have been implemented since January 1, 2006. To meet environmental protection needs, more toluene will be added to US gasoline, which will lead to a reduction in the amount of toluene exported to Asia.
Traders estimate that the current inventory of toluene in eastern China is about 25,000 to 30,000 tons, which is lower than the usual 40,000-ton inventory level. In addition, China’s toluene imports jumped by about 40% to 33,000 tons in November last year, which was the first time since China’s imports of toluene fell in January 2005. This strengthened the market’s expectation that China will actively import toluene in the new year.
Styrene monomer prices rise
Due to the combined effect of strong crude oil market prices, failure of styrene production by Korea's Icheon company, and a decline in China's styrene monomer inventory, the opening price of the Asian styrene monomer market rose by US$25/ton to 1010 on January 3. USD/ton (FOB Korea). In the morning, a transaction of 2,000 tons of styrene monomer cargo shipped in the second half of January was traded at a price of USD 1005/tonne (FOB Korea).
Ethylene and propylene prices are promising Affected by the strong downstream demand and the suspension and overhaul of the 5th cracking unit of Taiwan's CNPC, the prices of ethylene and propylene in the Asian market started to rise at the beginning of the new year. Market media pointed out that since the end of December last year, supply and demand of ethylene and propylene supply in Asian markets have exceeded expectations. The main reason is that Taiwan’s CNPC’s fifth cracker in Kaohsiung should be shut down until mid-January.
The Asian propylene market has shown a strong trend in the past two weeks. On the 3rd of January, the price of propylene rose to US$955/tonne (FOB Korea), which was US$70/ton higher than the previous trading day. Ethylene prices also rose, but the increase was lower than propylene. On January 3, the ethylene price in Northeast Asia rose to US$935/tonne (CFR), which was US$10/tonne higher than the previous trading day. Southeast Asia ethylene price rose US$25/tonne to US$970/tonne (CFR).
Electric Pressure Cooker,All Clad Electric Pressure Cooker,Gowise Pressure Cooker,Power Quick Pot Electric Pressure Cooker
Zhongshan Sitom Electric Co.,Ltd , https://www.chinasitom.com