BENZENE:

Summary: Movement from Asia into the US waned this week as buy interest faded in the face of declining spot prices. US

spot prices posted consistent losses until the Asia-US spread flipped into negative territory on May 21. Prices have

remained muted however liquidity has increased in recent days with prices posting gains of 2.5 cents/day for three

consecutive sessions. Some participants suggested that the increased by interest was highly correlated to the pending

settlement of the June benzene contract, which was expected to settled in the mid to upper-440’s cents/gal.

ARRIVED/ARRIVING:

Siteam Adventurer - arrived at the Port of Houston on May 14 with just under 36,000 metric tons of benzene.

Siteam Jupiter – carrying at least 12,000 metric tons of benzene, the vessel arrived at LBC Baton Rouge on May 21. The

vessel was last seen in the US Gulf near Corpus Christi, Texas awaiting orders.

Atlantic Sirius – was seen berthed at LBC Baton Rouge on May 24 and heard to be carrying at least 14,000 metric tons of

benzene. The vessel last cast off from the Port of New Orleans on May 27.

Maritime North – carrying at least 6,000 metric tons of benzene and possibly more, was last seen moored at the Port of

Houston, where it arrived on May 28.

FPMC 30 - said to be carrying at least 6,000 metric tons of benzene arrived at the Plaquemine Parish Port on May 27.

The vessel has since been seen in anchorage outside of the Port of Houston.

EN ROUTE:

The vessel Formosa Thirteen, said to be carrying a total of 18,000 metric tons of benzene, was last seen of far off the

coast of Northern California, moving east at 13 knots. Sources said that the vessel was carrying 3 parcels of 6kt apiece

for various parties though confirmation was not immediately available. The ship was slated to arrive in Balboa, Panama

on June 9. (Last update seen at 7:19 p.m. on May 28.)

The vessel Cavatina, heard to be carrying between 15,000-21,000 metric tons of benzene, cast off from the Port of

Nagoya, Japan on May 28. The vessel was last seen moving south-southeast at 10 knots, destined for the Panama Canal.

The vessel was slated to arrive in Balboa, Panama on June 20, according to VesselTracker. (Last signal on May 29 at

12:28 a.m.) **Unconfirmed**

AROMATICS TRADE FLOW REPORT May 29, 2014 Vol 1, Issue 2

Copyright © The Petrochemical Standard 2014 | asiaeds@petchemstandard.com |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.

TOLUENE AND XYLENES:

Summary: Toluene and xylene prices in the US continued to make the market an attractive destination for imports. MX

prices touched as high as 360 cents/gal ($1,091/mt) on an FOB USG basis while toluene also touched the upper end of

the 350’s cents/gal range. Prices scaled back as the month neared its end. PX prices continued to climb as the US-Asia

arb re-opened. Still imports were destined for the east coast with some 12,000 mt expected to load in June from

Northwest Europe.

ARRIVED/ARRIVING:

Bow Sirius – the vessel was heard to be carrying roughly 8,000 metric tons of toluene, arrived at the Port of Houston on

May 22. The fixture was heard to be a contract parcel from Aratu, Brazil but confirmation was not immediately available.

Harbour Cloud - the vessel was last seen May 29 at 12:39 a.m. moored at the Pot of Houston, near Galena Park. The

ship, which cast off from Barranquila, Colombia.

PRICING AND MARKET DYNAMICS

The spread between FOB Korea and DDP M2 US flipped into negative territory on May 20, stifling buy interest. Prices

posted rebounds this week however and June closed midweek at $1,339.50/mt DDP USG. With FOB Korea values

closing at $1,270/mt FOB Korea and freight pegged at $63/mt, the Korea-USG spread moved back into positive

territory at $6.50/mt.

June Spot benzene prices on a DDP USG basis were 6.50 and 1.81 cents above the 5 and 20-day moving averages

Wednesday, which were at 441.58 and 446.19 respectively.

Copyright © The Petrochemical Standard 2014 | asiaeds@petchemstandard.com |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.

Copyright © The Petrochemical Standard 2014 | asiaeds@petchemstandard.com |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.

Copyright © The Petrochemical Standard 2014 | asiaeds@petchemstandard.com |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.

Benzene prices on a DDP USG basis

averaged 442.40 last week, down

4.50 cents/gal from the previous

week’s average.

Benzene imports into the USGC

breached the April number of 97,400

mt and were estimated at 100,600

mts as of May 28.

Margins for operators of HDA and

TDP units moved lower on stronger

feedstock toluene and weaker

benzene, estimated at $31.76/mt

and $70.24/mt, respectively.

Spot styrene prices in the gained on

stronger feedstock benzene and

were near 69.90 cents/lb FOB USG

midweek as styrene makers saw

margins near $74.10/mt.

The styrene to benzene spread

reversed course Tuesday, estimated

narrowed this week and was

estimated at $201/mt.

Spot benzene averaged 469.90 in

April while the MTD average for May

was at 444.89 on May 28.

The US PX-MX spread stood at $83

this week as stronger demand for

paraxylene bolstered pricing.

The toluene and xylene blend values

was estimated Wednesday at 345

and 361 cents/gal.

China’s April benzene imports were

reported at 40,958/mt, down 49%

from March levels.

410

420

430

440

450

460

470

480

490

500

3-M

ar-1

4

6-M

ar-1

4

11

-Mar

-14

14

-Mar

-14

19

-Mar

-14

24

-Mar

-14

27

-Mar

-14

1-A

pr-

14

4-A

pr-

14

9-A

pr-

14

14

-Ap

r-1

4

17

-Ap

r-1

4

23

-Ap

r-1

4

28

-Ap

r-1

4

2-M

ay-1

4

7-M

ay-1

4

12-M

ay-…

15-M

ay-…

20-M

ay-…

23-M

ay-…

SPOT BZ M1 DDP USG 5-DAY MOVING AVERAGE 20-DAY MOVING AVERAGE

0

20,000

40,000

60,000

80,000

100,000

120,000BZ IMPORTS INTO THE US

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

3-M

ar-1

4

6-M

ar-1

4

11

-Mar

-14

14

-Mar

-14

19

-Mar

-14

24

-Mar

-14

27

-Mar

-14

1-A

pr-

14

4-A

pr-

14

9-A

pr-

14

14

-Ap

r-1

4

17

-Ap

r-1

4

23

-Ap

r-1

4

28

-Ap

r-1

4

2-M

ay-1

4

7-M

ay-1

4

12

-May

-14

15

-May

-14

20

-May

-14

23

-May

-14

TDP Margins $/mt HDA Margins $/mt

$50

$100

$150

$200

$250

$300

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

11

-Mar

14

-Mar

19

-Mar

24

-Mar

27

-Mar

1-A

pr

4-A

pr

9-A

pr

14

-Ap

r

17

-Ap

r

23

-Ap

r

28

-Ap

r

2-M

ay

7-M

ay

12

-May

15

-May

20

-May

23

-May

Spot M1 BZ Spot M1 SM Spread

FREIGHT RATES

US DDP SPOT BENZENE AVERAGES

H2 March Spot Benzene Average 482.458

H1 April Spot Benzene Average 475.000

H2 April Spot Benzene Average 451.700

H1 May Spot Benzene Average 446.050

H2 May Spot Benzene Average 442.938

US Gulf to East Asia main ports: $60-64/mt.

US Gulf to China main ports: $63-67/mt.

US Gulf to Mumbai: $79-83mt

Ulsan to US Gulf: $61-65/mt

Copyright © The Petrochemical Standard 2014 | asiaeds@petchemstandard.com |

CONTENT IS PROVIDED “AS IS”. TPS MAKES NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS, TIMELINESS, OR RESULTS TO BE OBTAINED FROM,

ACCESSING AND USING TPS DATA.