Raw material costs of polyester producers have remained firm in the past seven days, due to tight supply in India. New PTA capacities will however be launched in the coming period in China, which could result in lower prices.
The raw material costs of polyester fiber producers have remained very firm in the last week whereas staple fiber and filament prices were falling by contrast.
Spot paraxylene prices have only lost 4$ or 0.4%, falling at a much lower pace than earlier experienced.
Tight supply is supporting the paraxylene prices after India’s MRPL has declared a partial force majeure therefore reducing PX production at Mangalore.
A new PTA plant of 1 million MT per year capacities will come on stream in the coming days in Sichuan, with demand for paraxylene therefore rising in China.
Until now, PTA prices have stayed very firm amid tight supply, with inventories for instance falling in Taiwan.
MEG prices have resisted in the past week, however further tumbling this Monday on the international market, and being down 16$ per MT over the weekly period.
Crude oil prices have remained firm over geopolitical uncertainties.
Margins have stayed very high at PTA plants where prices could eventually fall in the coming weeks in line with a rise of production in China.
With glycol prices continuously dropping, any decline of PTA prices would allow polyester fiber producers to further lower their price offers.
Source: Emergingtextiles
