Asian ethylene was slightly cheaper and buying interest thinned in anticipation of tight supply which pushed offers higher. However, buyers were reluctant to consider spot purchases at more than US$1,100 a ton CFR. In Europe, the August contract price for ethylene in Northwest Europe was fully settled up Euro 140 from July. In US, spot ethylene declined along with feedstock in a slightly backwardated market. Paraxylene prices firmed up in Asia on Friday amid directionless trading, tracking firming upstream isomer-grade mixed xylene. US spot paraxylene also moved higher on support of higher energy complex. However, demand was lackluster and supply remained ample. European paraxylene went up in line with Asian numbers.
Mono ethylene glycol prices jumped 6.5% in Asia as tight supply concerns were accelerated by news of an outage in Kuwait and the expectation of typhoon’s impact on cargo arrivals. In Europe, a spate of supply-side issues triggered a leap in prices for the MEG market. In US, spot prices were flat as it was already too high for most importing regions. Purified terephthalic acid prices rose in Asia on firmer sentiment, in tandem with recovering China's polyester markets.
Asian polyester chip markets were on firmer grounds as downstream polyester market was seen recovering fast. Downstream chip-based spinning unit saw margins improving with prices rising and therefore demand for polyester chip is expected to be good in the short term. Polyester filament yarn prices continued the climb, particularly in China and Pakistan. Producer raised offers for some coarse-denier DTY while maintained stable FDY offers. In India, PFY markets were stable to slightly higher. PSF prices moved higher steadily driven by firming polyester chip market. The markets were also supported by rising cotton prices.