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) ?xml:namespace>
($1 = €0.75)
Additional reporting by Bohan Loh
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