In China, semi-dull polyester chip (or PET) offers were mostly stable in the second week of February as downstream buyers were slowly resuming operations in the week. Markets were also cautious due to increasing supply recently. Further, many PET chip producers restarted their plants already which lead to more supply in the market. On the contrary, downstream mills were taking time to resume.
Polyester intermediate, purified terephthalic acid (PTA) prices in Asia were stable-to-up as the markets lacked upward momentum due to a slow recovery of downstream sectors. Downstream buyers conducted slow replenishment activities which did not support the PTA market. In the US, PTA prices were steady during the week. In Europe, PTA markets faced production problems, but weak demand persisted due to less downstream imports in low season in February.
Mono ethylene glycol (MEG) prices in Asian markets dropped that week despite bullish upstream markets, due to ample supply in the market. In the US, mono ethylene glycol (MEG) markets were bearish going into February as the price was talked down and the market discussions depended on whether the Chinese tariffs on US imports of MEG were lifted.
Paraxylene prices in Asia jumped in the second week of February supported by healthy market fundamentals and higher energy prices. In Europe, paraxylene prices also climbed in the week amid balanced supply conditions. In the US, spot paraxylene prices moved up in the week on expectations of tight supply.
Courtesy: Weekly PriceWatch Report
