Polyester chain prices have stayed frozen in the past week over celebrations of the new lunar year in China and elsewhere. Prices were this Monday firm on the paraxylene market but new signs of a slowing down global economy could depress PTA and MEG market prices in the coming period.
The petrochemical markets have remained frozen all over the past week, due to lunar year celebrations in the Far East.
Prices have not yet moved this Monday, as market participants were returning back to work.
Paraxylene prices have risen to higher levels as a series of maintenance operations are expected reducing offer in Asia.
The PX-naphtha spreads have reached record levels as crude oil prices have been relatively stagnant in the last week.
Although production cuts by OPEC and US sanctions on Iranian and Venezuelan origins are expected supporting prices, the global economic slowdown has begun taking its toll on buying intentions.
A rise of the dollar may has also depressed commodity prices in the past week.
PTA futures were slightly dropping today in China, with the nearby contract losing 0.6%, however still up 8.4% in the past four weeks.
The next days will probably help in determining the coming trends of the polyester chain.
On one side, petrochemical prices could confirm their recovery of the start of the year whereas US sanctions and other geopolitical uncertainties could further boost the market.
On the other hand, a lower economic growth than expected in different parts of the world would mean a weaker demand and lower prices, consecutively.
With new capacities being planned at different stages of the polyester production process, prices may find it difficult to further rebound.
Source: Emergingtextiles
