The  crucial  spread  between  paraxylene and feedstock naphtha widened by $42.40/mt, or 

12%, year on year from an average of $353.30/mt in 2015 to $395.70/mt in 2016, according 

to S&P Global Platts data. 

The  spread  was widest at $452.17/mt on August 5, a level not seen since August 19, 2014, 

when it was $468/mt. 

The spread averaged $361.30/mt in 2014. 

Integrated  PX  producers  need a spread of $200-300/mt for breakeven, depending on the 

plant's size, age and other factors. 

The  main  reason  for  the  wider  spread  in  2016  was  expansion  in downstream purified 

terephthalic acid capacity in China and lower naphtha prices, sources from South Korean P

X producers said. 

China Prosperity Jiangyin Petrochemical, also known  as Hanbang Petrochemical, started it

s new 2.2 million mt/year PTA plant at Jiangyin in the eastern Jiangsu province last March. 

"For 2016 there was only PTA expansion, no  PX expansion. Balancewise, [there was] more 

demand from the PTA [sector]," said a source with a South Korean PX producer. 

Meanwhile, the spread between CFR Taiwan/China PX  and FOB Korea isomer-MX widened 

4.8%  year  on  year  to  average  $147.03/mt  in   2016. Unintegrated  PX   producers have 

previously indicated that a spread of $160-$180/mt was needed for breakeven. 

Contributing to a marginal widening of the spread was new supply in the form of three new M

X plants  in Japan and  South Korea, with the startup of Hyundai Chemical's 1 million mt/year 

facility in late October. 

The  PX-toluene  spread  also  widened  by  $20.20/mt,  or 11.1%,  year  on year to average 

$202.60/mt in 2016. 

A PX producer described the calculation of the breakeven level for the PX-toluene spread as 

"complicated" as it depends on the spread with other products such as benzene. 

Toluene  is  typically  used  as  a  feedstock  in  toluene  disproportionation units to produce 

benzene and xylenes, of which the latter is further separated to produce PX.