31 January 2013 06:29 [Source: ICIS news]
SINGAPORE (ICIS)--China's major purified terephthalic acid (PTA) producers have announced their February contract list prices at yuan (CNY) 9,200-9500/tonnes ($1,479-1,527/tonne), stable-to-firm compared with the settlement price for January contract at CNY9200/tonne, according to company sources.
Sinopec, Yisheng Petrochemical and Xianglu Petrochemical set their list price at yuan (CNY) 9,200/tonne, Yuandong Petrochemical and Hengli Petrochemical set at CNY9,400/tonne, and Zhuhai BP sets at CNY9,500/tonne.
Sinopec also set its February paraxylene (PX), feedstock of PTA, contract list price at CNY12,500/tonne at the same time.
PTA producers’ loss has reduced although they are still making losses, and the margins will likely increase in the future, a major PTA producer said.
PTA prices have risen since late November last year, because of firming PX prices and recovering downstream demand on the back of an optimistic outlook for 2013.
PTA producers are concerned that PX prices would increase after the Lunar New Year holiday, given the increased PTA demand and that PX capacity is less than PTA, the source said.
As such, the operating rates of the PTA plants would not further increase in the near future, after increasing by around 5 percentage points since mid-December, the source added.
Many players are staying out of the market as the holiday approaches, and the PTA spot market is likely to be stable.
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