Dimethyl terephthalate Prices, markets & analysis
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Dimethyl terephthalate Overview Transcript
Dimethyl terehphatlate has been on a dramatic course of events.
Despite this being a relatively opaque market, ICIS is able to follow price developments, using calculations with upstream paraxylene and methanol.
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Dimethyl terephthalate: Market overview
European dimethyl terephthalate (DMT) production is diminishing because of competition from purified terephthalic acid (PTA) and PTA-based polymers.
INVISTA closed its 150,000 tonne/year Gersthofen DMT site in Germany. This closure will leave Oxxynova as the only DMT producer in western Europe.
While some DMT customers are sticking to DMT-based products, others are looking to convert.
DMT reference prices are calculated against upstream monthly paraxylene (PX) and quarterly methanol contracts.
PX started the year steady, partly due to the lack of price direction. Overall, PX is likely to be long in the dominant Asian market, potentially putting downward pressure on European prices in 2014.
The European methanol market appears likely to remain structurally tight in 2014, with prices supported at historically high levels.
New production capacity is generally not expected to be sufficient to balance out the market, particularly with three domestic plant turnarounds scheduled for the second quarter.
Updated to mid-Jan 2014
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Dimethyl terephthalate news & analysis
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Dimethyl Terephthalate Methodology
About Dimethyl terephthalate
Dimethyl terephthalate (DMT) are colourless crystals, insoluble in water but soluble in ether and hot ethyl alcohol.
DMT is available in molten (liquid) and flake (solid) forms. In Europe, mainly molten is delivered, with minimal imported quantities of flake material.
DMT is used mainly to produce polyester resins, fibres and films as well as engineering resins. The polyesters produced are used in fibres for the textile industry, the manufacture of food and drink containers such as polyethylene terephthalate (PET) bottles, and films used in photography, computers, audio-visual equipment and packaging.
For film applications, DMT can be preferred due to its adhesion addition quality.
DMT can also be used in engineering resins, such as polybutylene terephthalate (PBT).