From Thundering Pintail, 6 Months ago, written in Plain Text.
  1.  More term agreement arrangements for Eastern paraxylene were concluded this week in between manufacturers and also purchasers as major greenfield refineries will be beginning manufacturing on time-- shooting down earlier talk of hold-ups, traders and end-users validated Wednesday.
  2.  The term agreements were worked out at costs of minus 50 cents/mt to $3/mt for Platts CFR Taiwan/China term freights, depending upon the beginning, they specified.
  3.  Despite the fact that costs for 2019 CFR Taiwan/China PX term freights have actually concluded in favor of manufacturers at differentials that are somewhat higher than those authorized for the 2018 contracts, they fall short of previous assumption of flat to a small single digit alpha premiums, after producers lowered their deals complying with supposed delays in significant refinery startups.
  4.  Currently, China's Fuhaichuang, formerly known as Dragon Aromatics, has actually restarted among its two lines with 1.6 million mt/year of paraxylene ability in very early December, while Hengli Petrochemical's 20 million mt/year refinery in Dalian is expected to begin feeding captive naphtha and various other light oils for downstream aromatics production by June 2019.
  5.  Term contract costs in Asia utilize a price cut to the standard of 50% of the Eastern agreement cost value and also 50% of the regular monthly Platts CFR Taiwan/China spot marker average as the criteria to price their freight. In the event of a non-settlement, the formula goes back to 100% place prices.
  6.  Though customers as well as sellers concurred over the discount rate for term freights following year, market participants told S&P Global Platts that dispute over the interpretation for the Oriental contract part of the agreements stayed.
  7.  Currently, there are five PX ACP vendors in Asia: Japan's JXTG Nippon Oil & Power and Idemitsu Kosan, South Korea's S-Oil as well as SK International Chemical, and also ExxonMobil.
  8.  Usually there are seven ACP customers: BP, Taiwan's Capco as well as Asian Petrochemical (Taiwan) Corp., Japan's Mitsui Chemicals as well as Mitsubishi Chemical, and China's Yisheng Petrochemical as well as Jiangsu Shenghong Chemical Fiber Co
  9.  . At https://www.irohedp.com , India's Reliance Industries, has announced it will formally begin discussing the Oriental Agreement Rate as an ACP vendor for paraxylene from January 2019, as well as has actually likewise signed 2019 ACP-linked term agreements with at the very least three ACP buyers as of Wednesday morning, validated by counterparties.
  10.  However, Dependence's condition as an ACP seller for 2019 is yet to be validated by other ACP sellers, said market participants.
  11.  Term agreement negotiations are still ongoing.