PXN spread was recovering rapidly

On supply front, PXN spread was recovering rapidly, and spot supply was tight. Discussions for spot PX were at premium to formula price, equivalent to contract price minus $5/mt or minus $6/mt, hence, spot goods were attractive. Several producers in China, including Sinochem Quanzhou, Sinopec Fujian and Fujia Dahua restart their PX plants. Saudi’s Rabigh has also restarted its plant, while the operating rate is low. In addition, the problem that Vietnam’s NSPR had been faced with, which was the driving force to PX market prior to the holiday, has been solved, and regular contract supply from NSPR would be available. Moreover, some other plants in China or South Korea raise PX plant operating rates, and some outside China plan to further increase the run rates in Mar