China's share of polyester market set to hit 50%

29 June 2007 08:42  [Source: ICIS news]

SINGAPORE (ICIS news)--China is expected to continue to dominate world polyester production with global market share to hit 48% by 2012, from its current 40% share, said an industry player on Friday.

 

Global polyester production was also poised for positive growth, set to increase by 50% from 40m/tonnes a year in 2006 to 60m/tonnes a year by 2012, said Bertrand Jausseme, senior vice president of purchasing and base chemicals at Samsung Total Petrochemicals, speaking at the 3rd ICIS Asian Aromatics and Derivatives Conference here.

 

This polyester growth, however, could be derailed by tight supply and high paraxylene (PX) costs, thus squeezing purified terephthalic acid’s (PTA) margins, he said. PTA is a major feedstock for polyester chips, along with mono ethylene glycol (MEG).

 

Spot PX prices for the week of 22 June averaged $1,140/tonne CFR (cost and freight) CMP (China Main Port) versus PTA prices of $910/tonne CFR CMP, according to global market intelligence service ICIS pricing.  

 

While PTA production was set to increase in order to meet the demands of polyester producers, it would be risky to expand capacity without securing the PX supply, he said. To meet the shortfall of PX in China, supplies from the Middle East could be imported to cover the deficit, he added.

 

The two-day conference ends today.

 

 

 

By: Hong Chou Hui
+65 6780 4359

< previous article(ICIS Chemical Business podcast November 2, 2009)

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