Indias OMPL cancels tender offering 30000 mt paraxylene for endJune loading
Coal India to issue 6mn t coal tender at India's Mangalore Refinery Petrochemicals Ltd which supplies feedstock to ONGC Mangalore Petrochemicals Ltd. confirmed late Wednesday that a tender offering 30,000 mt paraxylene for filling over June 26-30 was terminated.
Although declining to comment even more, resources near the settlements said that the proposals received were taken into consideration "too low" at a price cut of $60-$65/mt to the five-day average of the Platts CFR Taiwan/China evaluations over that period.
Traders stated previously that given the prompt loading day along with a dearth of customers in Southeast Asia, the only alternatives were East and also Northeast China, and also there, PX inventories are currently high. This would describe the deep discount supplied by customers.
The business has actually declined to comment on what it will certainly do with the PX. However market resources said that OMPL was most likely to re-issue the tender offering the cargo for loading at a later date.
OMPL last supplied PX in a term tender in very early June for loading in Q3. Initially 40,000 mt/month was supplied, yet only 20,000 mt/month was granted to a Japanese trading firm at a discount of $34/mt to the Platts CFR Taiwan/China assessments.
This was a $3.50/ mt rise from the last term tender for cargo loading over January to June despite fresh PX supply from India, with Dependence Industries Ltd. launching its brand-new 2.2 million mt/year PX plant at Jamnagar.
The firm then reissued another tender for 30,000 mt/month for packing in Q3, which included the amount not granted in the first term tender.
Earlier, a business resource claimed that the amount supplied had been increased since the neighboring JBF Petrochemicals Ltd.'s 1.25 million mt/year cleansed terephthalic acid plant, to which OMPL is devoted to supply 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 300,000 mt/year of benzene at its aromatics plant in Mangalore and also sources its feedstock from MRPL's 15 million mt/year (300,000 b/d) refinery.
