Indias OMPL cancels tender offering 30000 mt paraxylene for endJune loading

A firm source at India's Mangalore Refinery Petrochemicals Ltd which supplies feedstock to ONGC Mangalore Petrochemicals Ltd. verified late Wednesday that a tender offering 30,000 mt paraxylene for filling over June 26-30 was terminated.

Although declining to comment additionally, resources near to the settlements said that the quotes obtained were taken into consideration "also reduced" at a discount rate of $60-$65/mt to the five-day average of the Platts CFR Taiwan/China assessments over that duration.

Utilities ask FERC to turn down proposed exports of US gas as LNG stated previously that offered the prompt loading day as well as a lack of customers in Southeast Asia, the only choices were East as well as Northeast China, and also there, PX supplies are currently high. This would certainly clarify the deep discount rate provided by purchasers.

The business has refused to comment on what it will certainly finish with the PX. However market sources claimed that OMPL was most likely to re-issue the tender supplying the freight for packing at a later day.

OMPL last provided PX in a term tender in very early June for packing in Q3. Originally 40,000 mt/month was supplied, yet only 20,000 mt/month was awarded to a Japanese trading company at a discount of $34/mt to the Platts CFR Taiwan/China evaluations.

This was a $3.50/ mt increase from the last term tender for cargo loading over January to June despite fresh PX supply from India, with Dependence Industries Ltd. launching its new 2.2 million mt/year PX plant at Jamnagar.

The business then editioned an additional tender for 30,000 mt/month for loading in Q3, which included the quantity not awarded in the first term tender.

Previously, a business resource stated that the quantity offered had actually been increased since the bordering JBF Petrochemicals Ltd.'s 1.25 million mt/year detoxified terephthalic acid plant, to which OMPL is committed to provide PX feedstock, was not mosting likely to start-up at the end of June as formerly scheduled.

OMPL can generate 900,000 mt/year of paraxylene and also 300,000 mt/year of benzene at its aromatics plant in Mangalore and also resources its feedstock from MRPL's 15 million mt/year (300,000 b/d) refinery.