South Korean producers raise 2020 benzene offers
South Korean benzene producers are seeking higher premiums for 2020 term sales with the contract negotiations still in their initial stages.
Premiums to South Korea's domestic consumers are generally about $4/t higher than the 2019 premium. Offers to China-based consumers on a cfr China basis were also made at premiums of more than $10/t to fob South Korea prices. Cfr China contracts this year were done at premiums of $5/t to fob South Korea prices.
This comes on the back of a $2/t increase to this year's term contract purchase finalized by Taiwan state-owned producer CPC. It buys benzene from overseas suppliers and delivers the benzene to Taiwan's domestic consumers. The 2019 term contract for imported benzene was done at a premium of $5/t to fob South Korea prices.
Overall aromatics operating rates in South Korea have been falling. South Korea's Lotte and Hyundai Cosmo reduced their operating rates, following on from a reduction in operating rates to 70pc at Japan's JXTG that started from May.
SK Global Chemicals' pygas feedstock to produce benzene was also reduced in October after the producer reduced operating rates at its naphtha cracker. GS Caltex and Hanwha Total this month reduced operating rates by 10pc and 6pc respectively at their selective toluene disproportionation units. These two producers may not have benzene for export in the coming year. The benzene supply balance in Yosu is currently tight, with the shortage being replaced by benzene from Ulsan to meet December demand.
Most South Korean producers are still working on balances for the coming year and have not made offers yet. These negotiations are expected to get into full swing at the start of December.
Negotiations in southeast Asia appears mixed. Initial offers to benzene consumers in southeast Asia were made at parity to fob South Korea prices on a cfr southeast Asia basis. Benzene contracts for 2019 for delivery to southeast Asia were done at a premium of $5/t to fob South Korea prices.
By Kate Lee
source: Argus Media
Top News
Glencore in talks to sell Philippine copper smelting unit
Rasul Khalife Soltani, Secretary of the Iranian Steel Producers Association on the sidelines of the 1403 Steel Symposium:
Mobarakeh steel is producing green steel through scrap recycling
Norilsk Nickel plans to sell all it produces in 2025
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
India’s record gold import said to be due to calculation error
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Norge Mining acquires Europe’s largest natural graphite producer
Mercuria partners with Zambia on metals trading venture
Aluminum price falls to one-month low in wider commodity slump
Lure of Anglo’s copper mines could test BHP’s spending resolve
Copper giant Peru foresees another production plateau in 2025
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Mercuria partners with Zambia on metals trading venture
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Lure of Anglo’s copper mines could test BHP’s spending resolve
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Aluminum price falls to one-month low in wider commodity slump
India’s record gold import said to be due to calculation error
Glencore in talks to sell Philippine copper smelting unit
