Rally in PX, PTA and MEG continues

15 Oct '10

2 min read

Paraxylene prices continued to remain firm but now market experts believe that the price rally will finish soon. In Chinese spot market, sellers aimed for benchmark level of US $1300 / ton. Offer price hovered at the highest level reached in the last 25 months in the range of $1275-1290 / ton.

PTA increased by $15 / ton in S E Asian markets. Price of PTA stood in the range of $1150-1155 / ton. Offers for cargoes imported from Korean region were quoted in the range of $1045-1050/ t on. In Chinese domestic market, price of PTA was in the range of RMB 8400-8600 / ton.

Ethylene price was stable at $1077 / ton. In S E Asian market, it touched around $1080 / ton. In Japanese market, ethylene was assessed in the range of $1120-1130 / ton. In the European market, the price hovered around $1085 / ton.

MEG price continued to grow at a slow and steady pace. In S E Asian market, price was in the range of $970-975 / ton, whereas offer price touched the level of $980 / ton. Downstream buyers were active in the range of $970-975 / ton. In Chinese domestic market, MEG was offered in the range of RMB 8250-8500 / ton.

According to experts the main reasons for the rally is that prices of main key raw material; crude oil is above $80 / barrel and also due to some production hiccups at BTX crackers plants, particularly in China.

They are also of the opinion that, downstream demand has not been excellent and that it could be mere speculation from traders. Actual buyers have already procured sufficient material at least for next 45 days through contractual deals.

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Fibre2fashion News Desk - India

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