PTA, MEG prices on downswing in Asian markets

Polyester intermediate, purified terephthalic acid (PTA) prices in Asia fell in the week ended 16 November 2018 in tandem with weak paraxylene cost, however supply was relatively tighter in the week amid plant shutdowns.

The average plant run rate in China fell to 69% in the week. However, China’s Honggang Petrochemical is planning to build a second PTA unit with 2.4m tons per year of capacity at its Lianyungang site.

In US, PTA prices were firm in the week. In Europe, PTA prices rolled over during the week.

Mono ethylene glycol (MEG) prices in Asian markets edged down in the week despite a sharp rise in ethylene cost. Prices were pulled down amid persisting weak market sentiment despite a decrease in supply during the week.

Inventory in East China declined 4.5% week on week. Meanwhile, China’s Henan Yongjin’s MEG unit’s restart date was also not decided. Qianxi Coal Chemical restarted its 300,000 tons per year MEG unit during the week after one week turnaround.

In Europe, mono ethylene glycol October contract confirmation was severely delayed, and spot prices remained stable while discussions were still ongoing.

In US, MEG prices were steady during the week.

Courtesy: Weekly PriceWatch Report

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