Aromatics
Overview
The global aromatics market is made up of several diverse product markets and can be affected by a great many factors.
Benzene is a highly traded and volatile commodity because of its predominantly co-product nature and unpredictable supply. Styrene, benzene’s largest derivative, represents about 50pc of global benzene demand. Anyone involved in the benzene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and large swings in pricing.
Meanwhile, the toluene and xylenes isomer markets are intertwined with the global markets for gasoline. Toluene and xylenes are highly traded commodities that create a lot of interest in the industry because of the various factors that affect demand growth. Outside of their inter-relationship with the gasoline markets, the major end-uses for these commodities vary across the world, from polyester fibres and food and beverage packaging to construction. Anyone involved in the toluene and xylenes industries – directly or indirectly – needs insight into how the toluene and xylenes markets can or will impact on their business, from raw material costs or as a price indicator for downstream products.
Our aromatics experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global markets.
Latest aromatics news
Browse the latest market moving news on the global aromatics services industry.
Ineos seals TotalEnergies’ Lavera petchem deal
Ineos seals TotalEnergies’ Lavera petchem deal
London, 2 April (Argus) — UK-based chemical petrochemical company Ineos has completed the purchase of TotalEnergies 50pc stake in the former joint venture at the Lavera chemical site in southern France with the deal including storage and pipeline assets. Ineos and TotalEnergies originally announced the deal in July 2023. Ineos now completely controls the assets at the complex including Naphthtachimie, which operates a 720,000 t/yr ethylene steam cracker at Lavera that can produce 300,000 t/yr of propylene and 120,000t/yr of butadiene. The acquisition also included the 300,000 t/yr Appryl polypropylene business and the Gexaro aromatics operation with a capacity of 270,000 t/yr, the Gexaro site will continue to be operated by Petroineos. Naphtha storage business 3TC was also included in the deal. Ineos plans to fully integrate the connected assets. Ineos already operated and owned ethylene oxide, polyethylene and oxo-alcohol production at the Lavera site. The company also operates the 207,100 b/d Lavera refinery through its Petroineos 50:50 joint venture with state controlled PetroChina. The deal includes Ineos taking control of southern sections of TotalEnergies' ethylene pipeline network from Lavera to the Lyon region. TotalEnergies previously stated that it did not use its share of ethylene production from the Lavera steam cracker and mainly sold it to Ineos. Ineos operates a PVC plant in the Lyon region under the Inovyn business. TotalEnergies operates the Feyzin cracker in the same area. The deal will allow closer integration between the Feyzin and Carling sites for TotalEnergies, the company said. The northern and central sections of the ethylene pipeline will continue to be jointly owned and remain operated by TotalEnergies. By George Barsted Eastern France ethylene pipelines post-transaction Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Covestro's Belgian polycarbonate plant complete
Covestro's Belgian polycarbonate plant complete
London, 27 March (Argus) — German chemical company Covestro has finished construction of a new polycarbonate copolymers plant at its Antwerp site in Belgium. The unit will use a solvent-free melt process in combination with a new reactor process, a technology platform that Covestro developed. This process reduces complexity of production, Covestro said, adding that the polycarbonates will initially be used for electronics and medical applications. The project, which cost "mid double-digit million euros," includes the construction of a pilot unit and production plant. It is the fifth polycarbonate line at the company's Antwerp site. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan's MGC to cease OX, PA production in 2025
Japan's MGC to cease OX, PA production in 2025
Singapore, 4 March (Argus) — Japan's Mitsubishi Gas Chemical (MGC) will halt the production of orthoxylene (OX) and phthalic anhydride (PA) from its Mizushima site from mid-January 2025. The more than 50-year-old 30,000 t/yr OX extraction plant and 40,000 t/yr PA unit will be shut because of reduced demand and a weak profitability outlook, according to MGC. OX is mainly used as a raw material for PA, as well as for solvents and pharmaceutical and agricultural intermediates. PA is also used as a raw material for plasticizers that add flexibility to vinyl chloride resin. By Bohan Loh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US benzene hits 18-month high on tight supply
US benzene hits 18-month high on tight supply
Houston, 14 February (Argus) — US benzene (BZ) this week reached an 18-month high on tight prompt supply, shipping delays and steady demand. US BZ increased on Tuesday by 1.5¢/USG to 427.5¢/USG, the highest Argus assessment since 29 July 2022. A heavy US refinery turnaround season in the current-quarter reduced US Gulf coast refining rates to 80.6pc last week, according to the Energy Information Administration. Refinery maintenance reduces reformer operating rates, yielding less derivative gasoline and aromatics, such as benzene. Benzene from reformate comprised an estimated 70pc of US benzene production last year — up from 66.5pc in 2022 — so reduced refinery rates have meant even less BZ availability in the snug domestic barge market and more reliance on imports. But logistics constraints, including low water levels at the Panama Canal and ongoing Red Sea vessel attacks, have delayed BZ import arrivals from Asia. Transpacific shipping costs for a 40,000 metric tonne (t) midrange vessel have climbed to $120/t, up from $80/t a year ago, as transit times have lengthened from 35 days to 55-60 days. Transatlantic transit shipping costs have nearly doubled over the past year from $32/t to $60/t for a 10,000t cargo. Higher freight costs and longer transit times have prompted US traders to bid up BZ to attract imports. Additionally, delays in imports arriving have led to some short covering efforts until volume does arrive, further supporting prices. Benzene inventories ended 2023 at low levels, estimated by Argus at just 16 days of rateable consumption, compared to previous year-end levels above 20 days of consumption. A revival of C6 exports — including BZ derivatives styrene monomer and cyclohexane — as well as forward demand for blendstocks ethylbenzene and cumene, has also supported a 33pc rebound in BZ prices since 2 January, when BZ started the year assessed at 322¢/USG, according to Argus data. The BZ-to-crude ratio, a metric for valuing derivative US Gulf coast BZ relative to upstream feedstock WTI crude, reached an 18-month high on 12 February at 2.33, when BZ hit 426¢/USG and March WTI crude futures settled at $76.92/bl. The BZ-to-crude ratio has averaged below 1.9 over the past five years. In a balanced US benzene market, spot benzene generally averages 1.95 times the value of front-month WTI futures. By Nicole Johnson US BZ spot and BZ-WTI ratio ¢/USG Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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