Demand for paraxylene has apparently rebounded a bit in the week of 21 March and prices were up in Asian markets. Hwever, in Europe paraxylene spot price was assessed down as the market was in bad shape, no demand and prices low. Purified terephthalic acid, a derivative of paraxylene, saw prices rising in Asia amid operating rate cuts by Chinese PTA producers and cost support. The markets warmed up a little and offers for cargoes were maintained above previous weekâ€™s level. In Europe, production rates for PTA increased recently, but were still low as demand remained weak. In US, PTA price were at lowest level in more than three years.
Ethylene, another feedstock in the polyester chain, saw prices drop in Asian markets as demand was persistently weak from downstream and easing naphtha prices kept prices in check. Prices were down for the third successive week due to same reasons. In US, spot ethylene prices were down despite an ongoing force majeure announced by INEOS Olefins while European ethylene prices were down on a combination of factors namely ample supplies. Downstream, MEG markets in Asia warmed up a little, and values inched up owing to healthy offtake and short-covering, together with the support from firming PTA market. In US, MEG prices were steady with little activity discussed in the spot market. Meanwhile, European MEG March contract price was fully settled at a decline on the month.
Polyester chips markets were weak under influence of the drop in raw material prices last week. Semi dull chip markets changed, but producers started lowering. Overall trading was insipid and deals were mainly in medium and small sizes.
Polyester filament yarn prices were mostly stable across Asian markets as cost support strengthened. Producers mostly pegged offers unchanged but discounts were still offered. In Pakistan, DTY prices were largely stable and trading was heard to be moderate with more of frequent small deals done. In India, POY PFY prices were stable amid slightly higher trading.
Although cost support strengthened through paraxylene, polyester staple fibre markets extended loss as trading did not improve amid a lack of confidence in China. Earlier in the week, the markets weakened and producers mostly cut offers further. Prices in India and Pakistan rolled over previous weekâ€™s numbers amid modest trading atmosphere.
Courtesy: Weekly PriceWatch Report
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