Asian paraxylene prices shot up significantly back to June end levels as traders' scrambled for short-covering in the week ended 18 July 2014. Prices continued to remain supported by shortage owing to the postponed start-up of new unit run by Total, planned maintenance of several units in China as well as the delayed restart of units run by JX Nippon. In the last two days of the week, prices gained as much as US$61 a ton and over the week, they were up US$83.50 closing the week at US$1,460-1,461 a ton FOB Korea and US$1,482-1,483 a ton CFR Taiwan/China. Meanwhile the spread - difference between naphtha CFR Japan and paraxylene FOB Korea, shot back to over US$500 a ton, a 9-month high.

The buoyancy in Asian prices underpinned European as well as in US markets. In Europe, spot paraxylene was assessed up US$75 to US$1,365 a ton FOB ARA while US spot surged US$80 week over week, to be assessed at US$1,375 a ton FOB USG. The spread in Europe jumped back to US$642 a ton, on naphtha Rotterdam basis.

Meanwhile, purified terephthalic acid markets recovered slightly on back of rising paraxylene prices. And together with the influence of a PTA industrial conference in China, PTA Futures surged midweek. Activity on the European spot PTA market was low, with no firm bids or offers reported during the week. Markets cited bearish sentiment in the downstream PET market due to new production facilities coming on line. Asian PTA markers rose US$10 on the week to US$990 a ton CFR China and US$996 a ton FOB Korea. In China, arrived or to-arrive-at-port PTA cargoes were quoted at US$975-980 a ton, with discussions around US$970-975 a ton. Offers for bonded cargoes were in the range of US$990-995 a ton.

Mono ethylene glycol prices rose on rising purified terephthalic acid futures in China. While polyester markets were under quiet correction, MEG markets also saw flat adjustment. European MEG spot prices also rose in tandem with Asian prices while producers August prices in US are set to move higher after MEGlobal stated that it will raise its North American benchmark for MEG by US cents 2 to US cents 55 per pound. Asian MEG markers gained US$12 on the week to be assessed at US$997-1,002 a ton CFR China and US$999-1,001 a ton CFR Southeast Asia. European MEG spot prices rose Euro5 to Euro800 a ton FCA NWE.

Polyester filament yarn markets were actively traded this week supported by rising input costs. In Pakistan, DTY producers pegged offers stable as trading activity was steady on firmed feedstock cost. In India, POY markets were stable amid thin trading and producers intended to raise offers on firmer costs but relented on weak buying interest. Polyester fibre markets fell before stabilizing, with overall trading improving slightly. As PTA rose and paraxylene surged, polyester fibre markets saw a rebound in sentiment. In India, PSF trading improved little, but producers were reluctant to offer low-priced goods on the back of high cost. In Pakistan, PSF prices rolled over.

Courtesy – YnFx Weekly PriceWatch Report and Daily Textile Price Service