08 October 2012 13:45 [Source: ICIS news]
BUDAPEST (ICIS)--Increased purified terephthalic acid (PTA) production in Asia could pull on global paraxylene (PX) volumes in 2013 and tighten the market, said a trader on Monday.
“There are several PTA plants starting up in China next year,” the trader said on the sidelines of the 46th annual European Petrochemical Association (EPCA) meeting in Budapest, Hungary. “They will all be looking to source PX, and there won’t be enough in Asia to meet that demand.”
Asia's PTA capacity is expected to reach 69m tonnes/year in 2015, a 60% increase from 43m tonnes/year in 2011.
In China, 11 new plants will come on stream in the next three years, with a total new capacity of 18.5m tonnes/year. The country's total PTA capacity will reach 39m tonnes/year in 2015, nearly double that of the capacity in 2011. The new plants will mostly have large capacities, varying from 1.4m tonnes/year to 2.2m tonnes/year.
While the European market has been characterised by balanced supply amid weak demand for PTA, the trader said that Asia may start to draw material from the Amsterdam-Rotterdam-Antwerp (ARA) region to feed the new plants as they come on line.
The EPCA meeting runs from 6-10 October.
($1 = €0.77)
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