Ethylene prices continued to edge down across markets amid poor demand from downstream users and falling energy complex. In US spot ethylene dropped as demand remained lackluster and feedstock prices mostly depressed. European spot also dropped pressured by fall in naphtha and overall demand. Paraxylene markets in Asia tumbled further under pressure of excess supply and delays in starting up new downstream purified terephthalic acid plants in China. European paraxylene slumped as weak confidence continued to weigh on demand. Ethylene prices dropped by 17% in Southeast and Northeast Asia, whereas in Korea prices had declined sharply by 23% to US$899.75 per metric ton FOB. Paraxylene prices dropped 13.4% to 1243.30 per metric ton FOB Korea.
Mono ethylene glycol prices plummeted in Asia weighed down by the decline in crude, paraxylene and ethylene markets. European mono ethylene glycol market turned bearish. US spot market remained quiet on the back of muted demand and falling prices. Purified terephthalic acid markets continued its bearish sentiment as weak downstream polyester sales pressured the PTA prices to go down to a 21-month low. During the month, PTA prices averaged at US$948.60 per metric ton FOB Korea, down 13.5% as compared to previous month. Meanwhile, MEG prices plunged 11% averaging at US$869 per metric ton FOB Korea.
With PTA and MEG mirroring weak futures softening cost support to polyester chip markets. Polyester filament yarn markets in Asia were in stalemate as cost support from upstream dwindled dramatically, while downstream demand was hard to pick due to dull season. In China, polyester filament yarn prices averaged US$2.10 per kg CIF China. Polyester staple fibre markets continued their weakness amid prevailing bearish sentiment, as market fundamentals remained weak and polyester industry failed to get rid of their downtrend. In June 12, 1.4D/38mm PSF prices averaged at US$1.58 per kg CIF China. As compared to previous year, prices had declined by 20%.