China PTA prices rise on strong PX

25 March 2008 08:01  [Source: ICIS news]

SHANGHAI (ICIS news)--The average purified terephthalic acid (PTA) prices were at yuan (CNY) 8,100-8,200/tonne ($1,147-1,161/tonne) ex-warehouse east China this week, up CNY300/tonne compared with early March, said traders on Tuesday.

High crude oil costs, even though it closed below $100/bbl overnight, exerted strong upward pressure on paraxylene (PX), the raw material for PTA, they added.

Spot PX prices soared $30/tonne higher to $1,300/tonne CFR (cost and freight) China and $1,280-1,290/tonne FOB (free on board) Korea from last week, said traders.

"The bullish sentiment seems advantageous to PTA, but we should take caution that situation may reverse," one of the traders said in Mandarin, adding that downstream polyester factories might find it hard to cope with rising PTA prices.

($1=CNY 7.06)

For more on PTA and PX visit ICIS chemical intelligence

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Author: Dolly Wu
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