APIC ’08: Bullish PX may dent China June PTA mkt

26 May 2008 12:02  [Source: ICIS news]

SINGAPORE (ICIS news)--Purified terephthalic acid (PTA) producer Siam Mitsui is pessimistic about the Chinese PTA markets in June due to bullish price trends in the paraxylene (PX) feedstock industry, said a company executive on Monday.  

"We are not so optimistic for the China market because PX prices might be settled close to $1,400/tonne (€882/tonne) in June, up $100/tonne from May settlement prices," said Siam Mitsui sales manager Somjane Sooksripanich, who is in Singapore for the Asia Petrochemical Industry Conference.

"If we have to pass on the full [increment of] cost to downstream polyester manufacturers, the polyester players might not be able to absorb the increase and [thus] the June markets may be poised to collapse," he said.

Asian PX was assessed $40-95/tonne higher in the week ended 23 May due to buoyant crude values and tight regional supply, according to global chemical market intelligence service ICIS pricing.   

Siam Mitsui is a joint venture of Japan’s Mitsui Chemicals and Thai conglomerate Siam Cement.

Major PTA producers in Asia include BP, Formosa Chemical and Fibre Corp (FCFC) and Mitsubishi Chemicals.

($1 = €0.63)

For more on PTA, PX visit ICIS chemical intelligence
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By: Serene Cheong
+65 6780 4359

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