InterviewPX prices to stay strong for two years – PTTGC CEO

28 February 2012 08:37  [Source: ICIS news]

SINGAPORE (ICIS)--Asia’s paraxylene (PX) prices are likely to remain high and margins will stay strong in the next two years, given tight supply amid strong demand from the downstream purified terephthalic acid (PTA) sector, PTT Global Chemical (PTTGC) CEO Veerasak Kositpaisal said on Tuesday.

Kositpaisal described 2011 as “one of the very best years” for PX, with a strong increase in China's PTA capacity driving up demand.

“We think, at least for another two years, we will continue seeing PX prices and margins, maybe not as good as last year, but at pretty high levels,” said Kositpaisal.

At a presentation of PPTGC’s results on 17 February, the company said the spread between PX and feedstock naphtha can be maintained at above $600/tonne (€450/tonne) this year because of stronger downstream demand.

Naphtha prices were at $1,084-1,087/tonne CFR (cost & freight) Japan, while PX prices were at $1,670/tonne CFR Taiwan/Ningbo at midday on 28 February in Singapore, according to ICIS.

PTTGC was formed in October last year from the amalgamation of PTT Chemical (PTTCH) and PTT Aromatics and Refining (PTTAR).

($1 = €0.75)

Additional reporting by Bohan Loh

By: Pearl Bantillo
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index