PanXchange® Sand: Benchmarks & Analysis 03.15.2021

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The frac sand market continues to showcase optimism regarding rising WTI prices.

In the Permian basin, FOB Kermit 100m and 40/70m sand prices have remained relatively flat since last week, with prices falling by $0.05 and $0.25 per ton, respectively. Prices remain at relatively high levels, as WTI prices have stabilized in the $65 per barrel range. Northern White Odessa 40/70m sand prices have fallen by $1.00 per ton bandwidth since last week, suggesting that Northern White’s use as a substitute product is limited as in-basin supply and logistics operations have come back online.

PanXchange® Sand: Benchmarks & Analysis 03.08.2021

The frac sand market is showcasing optimism regarding rising WTI prices.  

Permian deliveries and sand plant operations are quickly rebounding from the inclement weather curtailments, and reports from PanXchange’s communication channels suggest that things are almost  “back to normal.” FOB Kermit 100m and 40/70m sand prices have remained relatively flat since last week, with prices falling by $0.05 and $0.40 per ton, respectively. Prices remain at relatively high levels amid a steadily rising WTI price. Northern White Odessa, 40/70m sand, rose by $2.00 per ton since last week, suggesting that operators are beginning to assess the completion of higher breakeven Permian wells that could maximize profitability via Northern White sand. 

PanXchange® Sand: Benchmarks & Analysis 03.01.2021

The frac sand market has begun to cool off amid the aftermath of a historic winter storm hitting the United States, particularly in the US south.

The Permian continues to experience substantial difficulties related to the unprecedented cold weather snap that has extended to the southern reaches of the United States. Prices have fallen on a per-ton basis as deliveries and sand plant operations are quickly rebounding from the inclement weather curtailments. As such, in the Permian, FOB Kermit 100m and 40/70m sand prices have fallen by $2.50 and $2.00 per respectively since last week. Prices still remain at relatively high levels, amid a steadily rising WTI price. Northern White Odessa 40/70m sand prices remained relatively flat, as prices stayed within $0.05 per ton bandwidth since last week, suggesting continued limited demand for Northern White products in the Permian.

PanXchange® Sand: Benchmarks & Analysis 02.16.2021

The frac sand market continues to be action-packed heading into this week. The Permian is experiencing substantial difficulties related to the unprecedented cold weather snap that has extended to the southern reaches of the United States. Prices have largely held flat as deliveries and sand plant operations have stalled due to the inclement weather. Plants have lost power and having plant equipment freeze-up has left sand producers with limited options until they are presented with better weather this week and have their power supply restored.  In the Permian, FOB Kermit 100m and 40/70m sand prices decreased by $1.00 and $0.70 per ton respectively since last week, as producers have increased capacity to produce in-basin sand. However, prices still remain at highs not seen since the frac sand price surge in February 2020.

PanXchange® Sand: Benchmarks & Analysis 02.08.2021

The frac sand market is off to an explosive start in February. In the Permian, FOB Kermit 40/70m and FOB Kermit 100m frac sand prices have leveled off since last week’s massive gains, falling by $0.75 and $1.40 per ton respectively since last week. Even with the leveling off in prices, they are still at highs not seen since February 2020. The Permian producers continue to race to catch up to growing demand. Chatter coming from various producers of expanding plant capacity in the region appears to have placed downward pressure on prices. 

PanXchange® Sand: Benchmarks & Analysis 02.01.2021

The frac sand market is off to an explosive start in February. In the Permian, FOB Kermit 40/70m and (in particular) FOB Kermit 100m frac sand prices have accelerated their upward climb, increasing by $3.00 and $6.00 per ton respectively since last week. Prices in this range have not been seen since the frac sand price surge in February 2020. The Permian is experiencing a temporary shortage of in-basin supply as producers race to catch up to growing demand, bolstering prices in the near term. There has been chatter coming from various producers of expanding plant capacity in the region. Frac sand’s rapid demand recovery has led to an acute shortage of trucking and last-mile logistics options in the near term and has exacerbated the increase in frac sand prices. Meanwhile, FOB Odessa Northern White 40/70m prices fell by $0.25 per ton since last week. Capital expenditures using in-basin sand (all else equal) are more likely to be economic at current crude oil price levels than a more expensive completion design utilizing Northern White sand. As a result, in-basin prices are rising, while NW Odessa prices continue their downward trend. 

CQG Releases New PanXchange Widget on CQG Desktop

CQG PX

New Offering Provides Direct Access to Premium Benchmarks and Analysis Content for Hemp, Frac Sand, East African Commodities

CHICAGO / DENVER, Jan. 26, 2021 — CQG, a leading global provider of high-performance
technology solutions for traders, brokers, commercial hedgers, and exchanges, and
PanXchange, a Denver-based over-the-counter (OTC) physical commodity exchange and price
discovery platform, today announced the launch of a new PanXchange widget within the CQG
Desktop platform.

PanXchange® Sand: Benchmarks & Analysis 01.25.2021

The first several weeks of 2021 in the world of frac sand have been action-packed.  In the Permian, FOB Kermit 100m and FOB Kermit 40/70m frac sand prices have continued their upward climb, increasing by $0.65 and $3.00 per ton respectively. The Permian is experiencing a temporary shortage of 40/70m supply as producers race to catch up to growing demand, bolstering prices in the near term. However, we expect that the price spread between 100m and 40/70m local in-basin sand will narrow within a several week time frame as more 40/70m supply comes online. Meanwhile, FOB Odessa Northern White 40/70m prices fell by $0.50 per ton since last week. Capital expenditures using in-basin sand (all else equal) are more likely to be economic at current crude oil price levels than a more expensive completion design utilizing Northern White sand. As a result, in-basin prices are rising, while NW Odessa prices continue their downward trend.