Polyester chip (PET) prices in Asia were largely stable in the week ended 18th January 2019 underpinned by bullish PTA and MEG markets during the week. In China, semi dull chip offers were range-bound while buying activity boosted up in the week. In general, supply is expected to decrease a bit amid approaching Spring Festival while some makers postponed to launch maintenance.
Polyester staple fibre (PSF) prices were steady in China and India while they climbed in Pakistan during the week. In China, PSF offers were pegged stable amid firm raw material polyester chip cost in the week. Market transactions picked up in the last week while producers continued to liquidate goods at similar offers this week.
Polyester filament yarn prices were firmer in China and India while they edged down in Pakistan during the week. Overall, PFY offers are likely to inch up in coming weeks.
Mono ethylene glycol (MEG) prices in Asian markets jumped in the week due to increased offtake volumes after briefly falling in the previous weeks. In US, spot mono ethylene glycol prices faced headwinds in January from ample supply and weak demand, much like the winter season. In Europe, spot mono ethylene glycol prices continued to drop amid flat buying interest as a downcast mood was still prevailing. Meanwhile, antifreeze season is approaching the end for some market players.
Purified terephthalic acid (PTA) markets in Asia edged up in line with firmer paraxylene cost while supply was sparse during the week. In Europe, January purified terephthalic acid (PTA) contract prices declined for the fourth consecutive month, following in the footsteps of upstream markets while region limited the month-on-month drop of the January contract price. In US, MEG prices were range-bound this week.
Ethylene (C2) prices in Asian markets surged in the week supported by pre-Lunar New Year re-stocking in the Chinese markets. In US, spot ethylene prices increased in the week amid higher demand and slightly higher feedstock costs. Ethylene consumption is being bolstered amid the commissioning a new downstream unit recently. In Europe, spot ethylene market remained soft amid lengthy supply and dull demand, but this is offset by an increase in energy prices.
Paraxylene (PX) prices in Asia inched up amid range-bound upstream markets during the week. In US, spot paraxylene prices increased sharply on the low end in tandem with slightly higher crude prices and declining refinery during the week. In Europe, spot paraxylene prices edge down in the week despite firmer crude.
Courtesy: Weekly PriceWatch Report
