en.Wedoany.com Reported - Recently, the United States implemented a 60-day temporary waiver of the Jones Act, which will have a significant impact on domestic shipping. Market participants point out that this policy adjustment may alter the trade flows of para-xylene (PX) and aromatics blending components in the short term, potentially driving PX produced on the U.S. Gulf Coast (USGC) to flow to consumers on the Atlantic Coast (USAC).

In the past, PX consumption on the U.S. Atlantic Coast relied primarily on imports, with Saudi Arabia, South Korea, Brunei, the Netherlands, and India being the major sources. Since the U.S. imposed additional tariffs last year, the trade landscape has been reshuffled. Global Trade Tracker data shows that Saudi Arabia has now become the primary PX trading partner, accounting for over 50% of imports. However, the near-stagnation of shipments through the Strait of Hormuz has led to tight supply of PX and its feedstocks.

PX produced on the U.S. Gulf Coast is typically consumed locally, and shipping it to the Atlantic Coast is not a conventional choice. However, from February 28 to March 18, the price of 5211-grade mixed xylenes (MX) in the region rose by 102 cents per gallon to reach 389.5 cents per gallon. Combined with the Jones Act waiver, market sources stated: "The price increase, coupled with the cost reduction enabled by the waiver, may incentivize more USGC-produced PX to be shipped to the Atlantic Coast."

Another source indicated: "This waiver could also facilitate the movement of USGC-produced toluene and MX to the Atlantic Coast for use as gasoline blending components, although U.S. blenders typically prefer importing alkylate from Europe." Alkylate imports are exempt from tariffs as they are used in the energy sector.

Furthermore, the transportation of benzene and styrene is expected to be largely unaffected by the Jones Act waiver, as consumers of these products are mostly connected to refineries and pipelines, or receive cargoes via inland barges.

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