Polyester margins have come under pressure due to reduced demand growth rates.

Production capacities for polyester and related products in its value chain are predicted by industry analysts to increase rapidly. But at the same time, demand is observed to be slack from the beginning of 2012, and seems to continue in the same trend. Polyester fabric market has also slowed down, which will affect the yarn market. Polyester fibre and filament capacities are predicted by industry analysts to grow exponentially by the end of 2012. Industry players are gearing up by increasing their capacities, which would be available in the market by the end of 2012 or 2013.

Prices of PX and MEG would become firm in the coming months, while PTA prices would remain in the range of USD 1100-1150 per ton. Demand and supply imbalance signals that polyester market will not support price increase for 2012. Polyester margins will face severe pressure due to new capacity additions in the next five years.

Article includes price and market analysis of 9 products in the Polyester Value Chain:

  • Crude Oil
  • Naphtha
  • Paraxylene (PX)
  • Purified Terephthalic Acid (PTA)
  • Ethylene
  • Monoethylene Glycol (MEG)
  • PET Chips
  • Polyester Staple Fibre (PSF)
  • Polyester Filament Yarn (PFY)

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