Paraxylene prices in Asia are under downward pressure from processing markets
MOSCOW – Paraxylene prices in Asia fell by about USD32 per tonne last week following a downtrend in upstream oil and naphtha markets, ICIS reported.
Naphtha quotes in the region fell to their lowest level in three months due to a sharp drop in global crude oil futures, as coronavirus in China raises concerns about weak demand.
So, on January 24, paraxylene prices in Asia were in the range of USD793-795 per tonne, CFR CMP (main ports of China) / Taiwan, according to ICIS.
However, on January 28, two deals were concluded with deliveries in March at a price of USD762 per tonne, CFR CMP / Taiwan, which is the lowest level since the beginning of 2016. Paraxylene prices Asia downward
There are concerns in the market that the ongoing outbreak of coronavirus in China will adversely affect downstream market demand.
According to some market participants, if the situation worsens, capacity utilization at enterprises for the production of purified terephthalic acid (TPA) and polyester can be reduced. Paraxylene prices Asia downward
Paraxylene is a raw material for the synthesis of terephthalic acid – an intermediate for the production of polyethylene terephthalate (PET).
According to the ICIS-MRC Price Survey , the epidemiological situation in Asia worsened last week and it became clear that it could seriously affect the Russian market of PET granules. Paraxylene prices Asia downward
The current nervousness surrounding the spread of coronavirus in China has sharply increased the uncertainty about the export prices of Chinese manufacturers in February and, accordingly, the formulaic prices of Russian manufacturers.
In addition, the availability of Chinese PET volumes in the near future remains unclear, and against this background, the level of demand for Russian PET in the next 2-3 months.
So far, all shipments from China have been suspended until February 10 in accordance with the order of local authorities. Paraxylene prices Asia downward
The shift in the shipping schedule led to a sharp increase in the load on sea carriers in February – March. The current situation can lead to both growth and lower prices in the region.
Wood Mackenzie has warned that the coronavirus outbreak could have a serious impact on the worldwide polyester chain.
The industry had similar difficulties during the SARS outbreak in 2003, when polyester production saw a major dip.
Salmon Lee, Wood Mackenzie Principal Consultant, said: “The polyester chain could falter amid the economic disruption in China. Concerns among market players in the polyester chain are widespread. Central China, where Hubei is at the core, is in a virtual standstill. All transport links have been cut amid the lockdown.”
Denmark-based Brødrene Hartmann A/S (Hartmann) has entered into an agreement to fully acquire Punjab-based Mohan Fibre Products Ltd, a provider of moulded fibre packaging for fruits and poultry in India.CrudeOil Carbon Fiber RePackaging
Hartmann said it has agreed to acquire Mohan Fibre for Danish Krones(DKK) 119 million (around $17.55 million, or Rs 125.22 crore at current exchange rates), the company said in a filing with Nasdaq Copenhagen.
It is undeniable that plastic waste contributes to ecological devastation and issues in human health.
In 2017, industrial ecologist, Roland Geyer, led a study on the ‘Production, use and fate of all plastics ever made’ and estimated that there are more than 8.3 billion metric tons (Mt) of plastics that have been produced since the 1950s.CrudeOil Carbon Fiber RePackaging
The study also found that in 2015, only nine percent of plastics have been recycled, 12 percent incinerated and 79 percent accumulated in landfills or in the oceans.
If this trend continues, it is expected that roughly 12,000 Mt of plastic waste will be in landfills or the natural environment by 2050.
The French parliament yesterday passed a law forbidding retailers from destroying unsold clothes and banning single-use plastic containers by 2040, part of the government’s efforts to reduce waste.CrudeOil Carbon Fiber RePackaging
The bill adopted by the Senate, after being cleared by the lower house National Assembly last week, bans fast-food restaurants from serving food that is not for takeaway in plastic containers beyond 2023.
Wittmann Group, the Vienna-based auxiliary equipment and injection molding maker has acquired FarragTech GmbH, an Austrian maker of products using compressed air for resin drying and mold cooling.CrudeOil Carbon Fiber RePackaging
Wittmann announced Jan. 31 that it has taken over FarragTech in Wolfurt. Terms were not released.
Tomra Sorting Inc., a manufacturer of sensor-based sorting equipment for the recycling and waste management industry, is growing its footprint in North America with the opening of a new office in Charlotte, N.C.
The 3,000-square-foot office serves as the company’s waste and metals recycling headquarters for customers operating in North, Central and South America. It can accommodate up to 20 employees, with additional room to grow. The company declined to say how much it had invested into the office.CrudeOil Carbon Fiber RePackaging
The Trump administration is continuing to seek trade agreements following the signing this week of the USMCA and earlier deals with Japan and the phase one pact with China. Their next step is the European Union and American Soybean Association President Bill Gordon says U.S. trade officials are hoping for an agreement although it will take some time to complete.CrudeOil Carbon Fiber RePackaging
He says one of the most important issues to work through with the E.U. is not only getting agriculture included in the talks but also getting them to accept biotech crops. Gordon thinks what was achieved in the USMCA on biotechnology should help with the Europeans.
The “circular economy” loomed large during October’s K 2019 show in Düsseldorf, with just about all key suppliers of materials and additives showcasing their latest sustainability efforts.CrudeOil Carbon Fiber RePackaging
Our September show preview discussed the increasing number of upstream and downstream industry collaborations underway in chemical and mechanical recycling, biobased feedstocks, and new resins offered with recycled and biobased content.
Parity with global prices, higher feedstock costs, and ample supplies are among the drivers.
Prices of PE and PP were expected to bottom out in January, when domestic polyolefin prices were largely in parity with global prices. Crude-oil prices moved higher in the first week of January amid escalating tensions in the Mideast, which helped feed international market sentiment that PE and PP prices had reached a bottom.
Driven solely by benzene prices, PS tabs were expected to move up. Lower feedstock costs for PVC and oversupply of PET were driving a downward trajectory for prices of those resins.CrudeOil Carbon Fiber RePackaging