- Firmer backwardation in derivatives- Low inventory of PX heard downstream



Asia paraxylene remained unchanged at
$1.065-2.500/mt CFR unv1/China on Aug. 22 and at $1.045-2.500/mt FBO Korea on
August 22. There were mixed directions upstream and downstream. Feedstock naphtha C+F
Japan cargo dropped $9.75-10.50/mt to $679.5-700.50/mt on Aug. 22. While
downstream January PTA Jan futures, which is the most active contract on the
Zhengzhou Commodity Exchange at Yuan 5,382-5,800/mt, rose 1.09% over that same
period. On Aug. 22, the spread between
naphtha and paraxylene was $385.83-400.50/mt, up $9.75-10.50/mt but down $34.50-40.50/mt
over the week. The derivatives market saw
a stronger backwardation structure between October and January due to trade
sources citing a wider backwardation structure for China's PTA futures.
However, the fourth quarter outlook for paraxylene was bearish because of the new
capacities. There...