Asia's paraxylene market extended falls Monday morning, with the CFR Taiwan/China PX price benchmark declining quickly to under the psychological $1,600/mt mark for the first time in three months under heavy sell pressure, market sources said Monday.
The CFR Taiwan/China PX price benchmark is pegged at $1,566/mt Monday morning -- a fall of $45/mt, or 2.8% -- from last Friday, its lowest since November 23 last year, Platts' data showed.
The price benchmark has already collapsed last Friday, falling $50/mt day on day to be assessed at $1,611/mt, the lowest level since December 5, 2012.
For April delivery supply, offers were at $1,570/mt CFR early Monday from $1,635/mt last Friday in the Asian PX market. No bids were heard.
Traders and downstream purified terephthalic acid producers were active sellers in the market.
"PTA producers are now selling PX cargoes because PTA prices are also falling quickly. Because of that, traders are also trying to liquidate their long positions," a market source said.
Market sources said China's Hengli Petrochemical -- one of the active spot PX buyers -- continued to stay away from the market after having lowered operations at its 2.2 million mt/year PTA plant in Dalian to 80-90% capacity.
Selling pressure was further accelerated Monday following the Chinese government's issuing of rules late last Friday, to further rein in home prices, which included higher downpayments and mortgage loan rates for buyers of second homes. This sparked fears in the Asian PX market on a slowdown of China's economic growth.
Amid plunging PX price, the PX-isomer-grade mixed xylene spread also sank 12.4% to $237/mt early Monday from $275.50/mt last Friday -- the lowest level since December 24 last year.
