Asian purified terephthalic acid and mono ethylene glycol prices, both raw materials for making polyester, have started roaring their heads once again after hovering below US$950 a ton mark since late March. This time, while the market is yet to see buoyancy, producers’ move to cut operating rate to support prices have come to play.
Asian ethylene markets were on the bullish note in the week ended 23 May as spot supplies tightened amid a lack of regional supply, supporting prices to rise. The markers rose US$12 a ton CFR Northeast Asia while South Korea marker was up US$5 a ton. Meanwhile European spot ethylene market tracked increase in naphtha values and ended at a six-week high, up Euro12.50 a ton FD NWE on the week. In US, spot ethylene prices recovered US cent 0.75 per pound despite thin trade while the market discussed producers preparing for third-quarter turn around.
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 week’s level. In Europe, production rates for PTA increased recently, but were still low as demand remained weak.
As bearish sentiments continue to cast dark covering over the entire chemical fiber industry, prices of most varieties are hitting 11-year low. Producers are caught in great losses and the downtrend is predicted to extend for some more time. For immediate relief, manufacturers may successively start cutting production or plan turnarounds forcing supply tightness to support prices.
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.
Last week, the polyester spun yarn markets remained tepid with limited new orders as buyers awaited for signal from the upstream fibre markets. In China, offers changed marginally, but transaction weakened. PSF prices briefly rolled over, with the central level
