Ethylene firms up entering 2014, paraxylene moderates in Asia

Ethylene prices were firmer in Asian markets amid tight regional supply and warming up demand in the week of 3 January. The markers rose US$20-30 week on week to be assessed at US$1,519-1,521 a ton CFR Northeast Asia and US$1,474-1,476 a ton CFR Southeast Asia. In Europe, ethylene markets were quieter and prices mostly rolled over while ample supply moderated ethylene prices in US.

Paraxylene prices slipped in Asia amid slightly weaker sentiment after the Asian Contract Price for January was finally settled, much lower than the nominations. The ACP was finally settled at US$1,415 a ton, as against the nomination ranging from US$1,470 to US$1,580 a ton. Spot markers fell US$7.50 on the week to be assessed at US$1,397-1,398 a ton FOB Korea and US$1,420-1,422 a ton CFR Taiwan/China. European spot paraxylene price was assessed at US$1,310 a ton FOB ARA, unchanged from a week ago while US spot paraxylene was assessed flat at US$1,315 a ton FOB USG.

Polyester intermediates, PTA and MEG markets remained sluggish due to the holidays while upstream crude oil price drifted. However, MEG markets still had cost supported from a firmer ethylene. After holidays, PTA futures in China shrank amid the bearish sentiment, dragging down MEG market. Asian PTA markets lost almost half of its previous week’s gains while markers rolled over.

Polyester filament yarn markets in Asia remained weak tracking crude oil and intermediate movements. Cost support also eased amid slight decline in downstream demand. Polyester staple fibre markets were stalemated waiting for restocking activity to begin. Nevertheless, producers pegged their offers firm on the back of limited inventory while market prices were relatively firm.

In China, 1.4D direct-spun-melt PSF was mostly in the range of US$1.61-1.63 a kg) in Jiangsu and Zhejiang, flat from last week. In Pakistan, PSF prices were stable in Karachi at US$1.70-1.73 a kg while Indian PSF prices rolled over at US$1.65 per kg.

Courtesy – Weekly PriceWatch Report