Polyester Chain: Ethylene, Paraxylene Prices Inch Up
Dated- 27 Aug , 2012 - Global
Asian ethylene prices rose on tight regional supplies while buyers from China were seeking spot cargoes. In Europe, the immediate focus of the market this week was the bullish expectations for September contract pricing which pushed up spot numbers. In US, spot ethylene assessments were the highest since ethylene early May.
Paraxylene in Asia rose but fell day on day Friday. European spot paraxylene prices tumbled amid muted demand for incremental volumes. US paraxylene spot increased implying that downstream demand remained somewhat sluggish at present. Asian MEG prices rose after beginning the week on a flat note. In Europe, MEG prices sustained strength, supported by production issues in the Middle East and turnaround season in Europe.
PTA prices rose in Asia tracking firmer crude oil futures and bullish upstream paraxylene markets. Prices continued to climb as capacity expansions in China were put off again this week. Polyester chips prices were sluggish in Asia as downstream spinning mills faced declining inventory. By week end semi dull market saw an increase in liquidity, but not in prices. Super bright chip was similar to SD chip this week and CDP chip markets remained stable.
Asian polyester filament yarn markets remained range bound with POY offers moving up and discounts tentatively withdrawn. DTY and FDY markets were in stalemate. In India, PFY market was lukewarm and prices mostly remained range bound while in Pakistan, PFY sentiment was gloomy and prices of some DTY specs declined. Polyester staple fibre prices were on a downward trend in China as market confidence was snapped by mute trading activities. Prices in India were seen lifted on increased costs pressure in recent weeks.