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China highly dependent on PX imports
Sep '11
China is highly dependent on imports of Paraxylene (PX), a raw material used in manufacturing of polyester fabrics. It is because the country's expansion of PX capacity is slow compared to the growth in addition of new PTA production capacity.

From 2003-06, China's PX production capacity increased at a growth rate of around 10 percent. This growth rate in the expansion of PX capacity jumped to a high of 33 percent in 2007.

In 2008, however, due to the global economic slowdown, the growth rate declined. But, the very next year, the PX production growth rate surged to 63 percent as large PX production facilities were put into operation.

No new PX capacity addition was made in 2010. And in the current year, so far, only a capacity of one million ton has been put into operation in Urumqi by Sinopec, taking the total PX production capacity in China to 8.26 million tons per annum.

Operating rate of the country's domestic PX industry was high prior to 2007, but it fell in 2008 and 2009. However, the operating rate increased again last year.

PX production facilities are refining units and hence they require annual maintenance. This and other factors like equipment failure affect their operating rate.

Fibre2fashion News Desk - China

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