Paraxylene prices Asia downward pressure
Paraxylene prices Asia downward
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.