APIC ’10: Polyester feedstocks headed for capacity peak in 2013

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 China, and added that PTA would also reach surplus capacity of around 11m tonnes by 2013, along with MEG of an unspecified amount.

“The strong demand recovery in fibres has prompted another round of PTA projects, especially in China, resulting in 5,500 tonnes/year of new capacity coming in 2012 and 6,450 tonnes/year in 2013,” said Tweddle.

However, for 2010 and 2011, PTA margins were expected to remain strong, she added.

For more on paraxylene and purified terephthalic acid, visit ICIS chemical intelligence
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By: Joseph Chang
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