14 May 2010 07:18 [Source: ICIS news]
MUMBAI (ICIS news)--Polyester intermediates paraxylene (PX), purified terephthalic acid (PTA) and monoethylene glycol (MEG) are headed for a global supply glut by 2013, a consultant said late on Thursday.
“Paraxylene capacity will outstrip consumption, reaching 10m tonnes of surplus capacity by 2013,” said Gillian Tweddle, business manager, polyester & intermediates, at global petrochemical market consultancy Tecnon Orbichem.
Tweddle spoke at the 2010 Asia Petrochemical Industry Conference (APIC), which takes place in Mumbai on 13–14 May.
Overcapacity would come despite a projected strong polyester fibre demand growth rate of 12% in 2010, according to Tecnon. After 2010, annual demand growth is projected to tail off a bit from 12%, but will remain robust.
Tweddle said that the new capacity would present a significant challenge for PX producers exporting to ?xml:namespace>
“The strong demand recovery in fibres has prompted another round of PTA projects, especially in
However, for 2010 and 2011, PTA margins were expected to remain strong, she added.
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