Market and product
European orthoxylene market considering imports
“Product from Asia is always an option,” said one buyer.
The interest in Asian product is against a backdrop of shorter supply in Europe, and a spot price that is higher than contract values for November.
“There is less opportunity from Europe. This supply side is still quite tight and additional quantities are difficult,” said the buyer.
The buyer added that Asian volumes could be either spot or contract.
One important factor in the discussions is the start-up of a new plant in Asia. Jurong Aromatics' complex in Singapore has a capacity of 200,000 tonnes/year of OX. The plant opened in September 2014 and is ramping up production. However, the company is said to be shipping no product to Europe at present.
“New producers start only now. They are still not able to make an offer yet and need a little more time,” said a second buyer in Europe.
According to a source close to the plant, Europe will be considered as an option but Asia remains the primary destination given the proximity.
