The US-Asia isomer-grade mixed xylenes arbitrage has shut on paper after being open for about a month, hit by higher US prices overnight Tuesday, Platts data showed Wednesday.
Asian isomer-MX CFR Taiwan was assessed at $1,297/mt Tuesday, up $2.50/mt day on day, while isomer-MX FOB US Gulf Coast was assessed at $1,248.36/mt, up 5 cents/gal ($15.15/mt) over the same period.
That left the isomer-MX spread between CFR Taiwan and FOB USGC at $48.64/mt, down $12.65/mt from Monday.
For the arbitrage economics to work, the Asia-US spread must be above $50/mt, based on a discounted term charter freight rate from the Gulf Coast to South Korea or Taiwan. Spot freight rates for the same route are currently at $78/mt for a 5,000-mt BTX cargo, according to Platts data.