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07 May 2008
Crackers taken down due to power outage
A power outage hit the YNCC in South Korea over the past weekend, affecting propylene availability, as it took down all three crackers. Following restart of one cracker, another power outage took it back down. One of the crackers also is heard to have mechanical problems that may keep it down for several weeks. The BTX unit there is also affected.
Of more immediate market concern is the fact that one of the Korean oxo producers is down due to lack of feedstock, while the other oxo producer has also experienced some effects. This will continue to tighten and already difficult 2-EH market, where spot pricing has been done in a range of $1930-1950/tonne CFR and could now be pushed higher. Increased alcohol pricing has pushed DOP pricing higher with confirmed business in a range of $1820-1840/tonne CFR.
Source: RXN
07 May 2008
New Formosa Plastics butanol plant delayed
The new Formosa Plastics butanol plant is now heard to be delayed into the July-August period, and as we noted in the last Monthly Business Report, merchant quantities of butanol were understood to be unlikely until several months following startup. FPC is heard in the spot butanol market to cover current needs.
Source: RXN
07 May 2008
May US mixed xylene contract unsettled
The US mixed xylene contract or May remains unsettled at this point. Blend values are approximately $3.63/gal ($1110/tonne), while the latest spot mixed xylene business was done at $3.52/gal ($1070/tonne). Economics are becoming increasingly difficult to justify extraction, and would appear to be at a loss on a current basis.
However the US orthoxylene contract has been settled at 56.5¢/lb ($1246/tonne), which is an increase of 2¢/lb ($44/tonne) over the April settlement. This appears to be a compromise between soaring feedstock costs and moderate demand levels.
Source: RXN
07 May 2008
China May PTA CP announced
BP announced $1050 for May PTA CP in China.
05 May 2008
European orthoxylene contract price settlement
The May contract price for orthoxylene in Europe appears to be more broadly settling at an increase of €20/tonne to €840/tonne ($1302/tonne). Producers had sought higher prices based on feedback costs and one producer is heard to be considering shutting down its isomer operations. Consumers point to moderate demand levels. In the end neither side is likely pleased, but the settlement is apparently being more widely accepted. US xylene contract negotiations are ongoing.
Negotiations on US olefins are ongoing as well. The direction is likely higher, but the level certainly continues under some rather strong discussion.
Source: RXN
08 April 2008
US mixed xylene contract settled
The traditional US mixed xylene contract was settled for April at $3.40/gal ($1037/mt or 47.0¢/lb) which is an increase of $0.20/gal ($64/mt or 2.75¢/lb) over the March settlement. This is viewed as more representative of the actual market than some of what has gone on in the past few months. With the onset of US gasoline season, the direction will be interesting as gasoline pricing has tended to peak earlier in the season.
Source: RXN
08 April 2008
April US orthoxylene price settled
The April US orthoxylene price has been settled at 54.5¢/lb ($1202/mt), which is an increase of 2.5¢/lb ($55/mt) from the March settlement. The upward move reflects increasing cost, but is somewhat tempered by moderate demand levels.
Source: RXN
28 March 2008
First WECP for April 2008
There was a settlement done today, 27 March, between a large MEG producer with two EO sites and a large Netherlands based tyre cord manufacturer at Euro970/ton DDP. This represents an increase of Euro19 increase over March.
We apologise for omitting to mention the €970/tonne specifically.
27 March 2008
Initial April ACP Paraxylene Settlement
Idemitsu has agreed April Paraxylene contracts in Asia with its clients at US dollar 1,260 per tonne, a rise of US dollar 90 per tonne over the March settlement. There is no news of settlements between other producers and their customers at present.
Contract discussions for Europe and North America have yet to begin in earnest, but this settlement is likely to influence the upcoming negotiations as energy prices remain elevated and the US gasoline season begins to get underway, potentially driving mixed xylenes pricing higher in the coming months.
17 March 2008
ExxonMobil Announce April Contract Price Nomination
ExxonMobil has given its nomination for the Asian paraxylene contract price for April at US dollar 1,330 per tonne CFR Asia. This is an increase on the current March value of US dollar 1,170 per tonne of US dollar 160 per tonne.
Paraxylene spot prices have been at US dollar 1,260-1,265 per tonne CFR Taiwan late last week and have increased today to US dollar 1,300 per tonne for H2 April material. Strong demand from solid downstream market and reduced operations among paraxylene producers helped boost prices.
Other major producers are expected to announce shortly.
13 March 2008
March US mixed xylene contract price
The US mixed xylene contract price for March is partially settled - full agreement will not be reached for this month´s contract. The partial settlement was heard at $3.20/gal ($973/mt or 44.25¢/lb). This is an increase of $0.34¢/gal ($104/mt or 4.7¢/lb) from the February contract price. Interestingly, the settlement was reached when mixed xylene blend values have topped the $3.30/gal level, and with energy prices continuing relentlessly higher.
Source: RXN Catalyst
13 March 2008
Sabic post a price increase for the April MEG ACP
Sabic posted a price increase for their nomination in April for MEG of US dollar 40 per tonne. This is an increase to US dollar 1320 per tonne from US dollar 1280 per tonne in March. Spot MEG markets have slipped a little and spot levels have moved back towards to mid US dollar 1100´s for imported material with domestic product at this time pretty flat at Renminbi 9600-9700 per tonne cash.
11 March 2008
Correction to March Outlook Report
The March outlook listed the European PTA prices for Quarter 4 in the table on page 14. The market prices quoted should have been in Euro’s and not US Dollars as stated.
Please accept our apologies for this misprint, the corrected table is show below.
WEST EUROPE PTA MARKET PRICE
Date - Euro/Tonne
25/10/2007 - 818-909
25/11/2007 - 813-904
18/12/2007 - 817-912
11 March 2008
Shell announce their April MEG ACP
Shell announced an ACP level for April arrival of US dollar 1320 per tonne CFR, US dollar 20 less than the MEGlobal announcement. This is a US dollar 60 increase on the March level which was set at US dollar 1260 per tonne.
07 March 2008
MEGlobal open April MEG ACP announcements
MEGlobal announced their ACP nomination today at US dollar 1340, an increase from the March level of US dollar 1280 per tonne. The text of the announcement can be seen below:
“Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be US dollar 340 per metrics tonne CFR Asian main ports for arrival April 2008. The April 2008 ACP reflects the short term supply/demand situation in the Asian market.”
06 March 2008
Initial European Paraxylene Contract Settlement - March 2008
An initial Paraxylene contract settlement has been heard at Euro 795 per tonne for March 2008, a Euro 10 increase over the February 2008 contract price. This agreement was reached between Invista and a NW European producer and reflects a rise of similar magnitude in Asian contract markets. The weakening US dollar exchange rate has reduced the Euro impact of the increase.
04 March 2008
US Ethylene Settles Down 3 cent for February
The US contract ethylene price has settled at a 3 cent decrease from January. The February PCI contract price will be 57.0-59.5 cent per pound delivered for an average of 58.25 cent per pound delivered. This settlement will thus set our US EO contract prices to 63.6-81.0 cent per pound FOB and our market average will be 74 cent per pound FOB.
Also MEGlobal has announced a decrease in their March MEG and DEG benchmarks. MEG decreased to 62 cent per pound FOB from 64 cent per pound and DEG decreased 6 cent from 54 cent per pound to 48 cent per pound FOB.
03 March 2008
Paraxylene March ACP Partially Settled
Paraxylene March ACP partially settled at US dollar 1,170 CFR between Japanese supplier and buyer, US dollar 70 higher than February.
BP nominated US dollar 950 for March PTA contract price in China. Local PTA producers nominated RMB8000-8200, equivalent to US dollar 903-925 per tonne.
According to China’s Statistic Bureau, China’s polyester fibre production (not including PET) in 2007 was 19.2 million tonnes. This represents a volume growth of 3.1 million tonnes or 19.5 percent over 2006.
28 February 2008
Correction to PCI March 2008 Market Outlook Report
We quoted in the Ethylene Oxide & Glycol Market Outlook Report for March 2008 that:
´Shell leads February Asia CP at US dollar 1,260 followed by MEGlobal and Sabic at US dollar 1,280.´
This should have read:
Shell leads March Asia CP at US dollar 1,260 followed by MEGlobal and Sabic at US dollar 1,280.
26 February 2008
First March MEG Settlement at Euro 951 Per Tonne DDP
There was a first MEG settlement today at Euro 951 per tonne DDP between a large Italian and multinational PET producer and a Netherlands based EOMEG producer. This takes place in the context of a sharp fall in the MEG ACP levels from February at US dollar 1,460-1,500 to March at US dollar 1,260-1,280 per tonne CFR. That said despite one very low spot bulk deal in Europe below Euro 700 per tonne CFR, more recent deals have been done a little below Euro 750 per tonne CFR and spot prices are rising. Asian spot levels are also slowly moving up over US dollar 1,150 per tonne CFR as traders move product. Therefore if the arbitrage between Europe and Asia is not yet open yet, it will be imminently.
26 February 2008
Second MEG Settlement for Europe in March
There was a second deal done for the contract price of MEG at Euro 951 per tonne DDP this afternoon between a South German EOMEG producer and a German PES producer.
21 February 2008
FCFC Ningbo PTA Approved
Rumours are strongly speculated that FCFC´s PTA plant in Ningbo received approval from NDRC early this week.
Official announcement is yet to be made by the company but we believe this 800,000 tonnes per year capacity, mechanically completed in Q3 2007, can start commercial operation in early June.
19 February 2008
US PTA and DMT Prices for January 2008
There appears to be some questions relating to the PTA and DMT prices for January. For the record the paraxylene price settled eventually at 54.75 cents per pound and the PTA price settled at 49.67 cents per pound after the quarterly adjustment.
The DMT price settled in the range 55.95-56.85 cents per pound based on essentially flat methanol prices.
18 February 2008
Shell and MEGlobal announce ACP for March 2008
Shell opened the announcements for the March ACP at US dollar 1,260 per tonne CFR. Markets remain quiet at this time as a lot of buyers are still on holiday. Some marginal business was done at around US dollar 1,080 per tonne CFR for imported material to China from Taiwan for end month delivery.
MEGlobal have announced their ACP for March at US dollar 1,280 per tonne CFR. The text released can be found below:
“Please note that the MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be US dollar 1,280 per tonne CFR Asian main ports for arrival March 2008. The March 2008 ACP reflects the short term supply/ demand situation in the Asian market.”
18 February 2008
Sabic Announce March MEG ACP
To complete the announcements for March, Sabic have opened their ACP announcement at US dollar 1,280 per tonne. This is the same level as MEGlobal and US dollar 280 per tonne down on last month, but higher than the Shell level: Markets remain very quiet today.
29 January 2008
1st February West Europe Contract Price Settlement
There was a settlement done today between a Global MEG Marketing Company and a large multi country European PET producer at Euro1,095 per tonne DDP.
12 December 2007
Sabic Announces a Rollover of Their MEG ACP for January 2008
Sabic announced yesterday that they would rollover their December ACP nomination for MEG of $1,590 per tonne CFR to January as well.
07 December 2007
MEGlobal Announces $1,590 Rollover for January Asia CP
The MEGlobal announcement for their January Asia price is as follows:
MEGlobal Asian Contract Price (ACP) for monoethylene glycol (MEG) will be $1,590 per tonne CFR Asian main ports for arrival January 2008. The January 2008 ACP reflects the short term supply/demand situation in the Asian market.
19 November 2007
S-Oil PX Expansion Plan
S-Oil´s board today approved the U$1.5 billion expenditure for the construction of second aromatics complex in Onsan Complex. When the construction is completed by June 2011, the new aromatics unit will produce 900,000 tonnes of paraxylene and 280,000 tonnes benzene per year. The refining capacity will also be upgraded from 580,000 bpd to 630,000 bpd to feed sufficient naphtha to the aromatics complex.
S-Oil´s current PX production capacity is 750,000 tonnes per year.
05 November 2007
Second MEG November Settlement Completed
There was a second settlement today at the rollover level of Euro1,108 per tonne DDP between a major tyre cord manufacturer in the Netherlands and a German EO/MEG producer with two sites.
In the meantime in Asia spot MEG hit close to $1,550 today, spot MEG increases steadily in view of the scarcity of available MEG. This includes European material shipped to Asia at over $1,500 per tonne CFR, sold presumably by a European producer in order to preserve European supply demand balances.
19 October 2007
Second Settlement for October MEG at Euro 1,108 done
A second settlement was done today at the level of Euro 1,108, which confirms the initial settlement done at EPCA at Berlin. This second deal was done between a three site EO producer and the largest non-integrated antifreeze blender in Europe. This confirms the Euro 1,108 per tonne contract price nomination for Europe. Spot MEG prices in Europe have stalled as downstream buyers are buying strictly to contract or indeed going for turnarounds where possible (PET for example). Blenders are drawing down antifreeze stocks and driving down supply chain inventories are as indeed the polyester producers. Spot prices in Asia until this morning were still increasing despite the problems polyester is having in recovering the large increases in MEG costs in their product prices.
17 October 2007
Sabic Announce Asian MEG Contract Price for November
Sabic announces $1,390 per tonne CFR for their Asia MEG November CP. This move quickly follows the Shell rollover of $1,400 and the MEGlobal move up from $1,350 to $1,400.
12 October 2007
Shell Announce Their November MEG ACP Nomination
Shell announced their November ACP MEG nomination at the level of $1,400/tonne today, a roll over from their October level.
11 October 2007
BP Exits Samsung Petrochemical PTA JV
According to Samsung Corporation´s voluntary disclosure at the Stock Exchange in Korea on 10 October, the company announced it acquired 14.22% of Samsung Petrochemical at the price of 19.2 billion Won (approximately U$21 million) from BP. As a result of this acquisition, Samsung Corporation´s total shareholding is increased to 27.27% to become the second biggest shareholder. BP has been in negotiation with Samsung group to sell its 47.4% shareholding to exit from the PTA joint venture in Korea. The remaining 33.18% has been acquired by Lee Bu Jin, who is currently Vice President of Hotel Shilla and the eldest daughter of Samsung Group chairman. The estimated acquisition price is 45 billion Won (approximately U$49 million). Samsung Petrochemical´s combined capacity at Ulsan and Daesan is 1.8 million tonnes.
11 October 2007
MEGlobal Announce Their November Price Nomination
MEGlobal announced their price for MEG deliveries in November on 10 October at the level of $1,400/tonne CFR an increase over October of $50/tonne. Their assessment is that this reflects the short-term supply/demand situation in the Asian market.
Spot MEG prices over the past few days have been around $1,390-1,400/tonne CFR, one cargo being sourced from Taiwan for end October lifting. At this time spot markets remain quiet as polyester producer’s assess the situation.
11 October 2007
TPPI Aromatic Plant Shutdown
Trans-Pacific Petrochemical Indotama (TPPI) Aromatic unit was shutdown on 5 October due to power outage. The first attempt to restart the plant on 9 October failed but resuming to normal production is planned during next week. Currently loading schedules for next week are unchanged but rescheduling discussion is on-going for after mid-October shipments. TPPI´s PX capacity in Tuban is 550,000 tonnes per year and benzene 350,000 tonnes. The plant was operating at much higher rate than the nameplate capacity until before the outage.
08 October 2007
Initial European Paraxylene Contract Agreements for October
There were several initial settlements made yesterday for the European October PX contract at Euro760 per tonne between a major producer and three seperate consumers. The agreements were made based on a $/Euro exchange rate assumption of 1.425.
02 October 2007
WECP First October Settlement
There was a settlement at EPCA on 1-10-2007 for MEG at the level of Euro1108/tonne DDP, a large increase over the September level of Euro905/tonne DDP reflecting Asian price increases. We wait to see if this is followed or not.
28 September 2007
IOC Mega Plan: Rs 43,250-crore capex in 5 years
According to Economic Times of India, IOC (Indian Oil Corporation), on Monday said it would spend Rs 43,250 crore (U$10 billion) over the next five years to carry out its expansion programs. Of this, Rs 30,000 crore will go into downstream integration," IOC chairman S Behuria told reporters on the sidelines of the company´s annual general meeting. The government-owned company controls 10 out of India´s 19 refineries and accounts for 40.4% share of national refining capacity. It has 60.2 million metric tonnes per annum refining capacity. Behuria said the naphtha cracker project in Panipat in Haryana is slated for commissioning in 2009 (includes 350,000 tonnes MEG plant). The company has already commissioned a 553,000 tonnes Paraxylene/PTA plant in Panipat. An integrated refinery-cum petrochemicals complex (including 1.2 million tonnes PX project) is also coming up at Paradip in Orissa which would further enhance its downstream integration, the Chairman stated.
13 September 2007
Sabic Announce Their October MEG Nomination
Sabic announced their ACP nominations at $1,275 per tonne for October 2007 today.
10 September 2007
Hualian Sunshine Stops PTA due to Commercial Reasons
Hualian Sunshine´s two PTA lines shutdown today due to commercial reasons for the estimated duration of a week. The overall PTA stock level has been rapidly rising in China since August as the industry waited for the seasonal upturn in demand.
07 September 2007
Shell Nominates $1,400 per tonne for the October Asian Contract Price
Shell nominated their October MEG price level as $1,400, after MEGlobal nominated $1,350 per tonne yesterday. Spot markets are very thin at this time as sellers seek to push up their prices but buyers remain wary of commitment. There have been some cases now of polyester producers selling MEG to the trade because they can make more money that way than making and selling polyester!
06 September 2007
MEGlobal Announces $1,350 for Asia MEG October CP
MEGlobal announced $1,350 per tonne CFR for their October Asian contact price. This is an increase of $290 per tonne over their September price of $1,060 per tonne CFR. PCI has confirmed inter-trade spot prices in Asia at $1,300 per tonne CFR and spot prices in Europe are at or above that level. There are substantial unplanned losses of MEG supplies adding to an already tight market. PCI projections are that supplies will only become more difficult over the next 2-3 months.
Several of the largest US antifreeze blenders have announced a $1.00 per gallon increase for September 10 following a 50 cents per gallon increase for September 4. Global markets are now preparing to deal with the highest contract prices in recent history. MEG inventories will probably fall to the lowest days stock level ever recorded. The supply crunch is developing at the same time PCI is predicting the strongest growth ever for MEG demand with a global market seeking up to 1.3 million tonnes of new supply, far exceeding any prior year by as much as 200,000 tonnes. The "perfect storm" has arrived from the buyer’s point of view on MEG. The silver lining might be lower PTA prices for the buyers helping cushion the MEG price increases.
05 September 2007
European PX Settlements Emerging for September 2007
After an initial settlement between BPRL and Diolen at Euro792 per tonne delivered, further settlements have been agreed between other European producers and consumers at the Euro792 per tonne level.
One large consumer has yet to agree the September contract number and we await news on the progress of discussions in that area.
31 August 2007
Second West European Settlement at Euro 905 per Tonne DDP for September
There was a second deal done today between a large PES/PET MEG buyer based in Germany and an Antwerp based German producer today. Spot prices for MEG in Europe have suddenly shot up as the realisation that material is tight hits home. Spot trucks have moved up into the Euro 900 band, although one or two cheaper East European trucks at a little below Euro 900 per tonne DDP are being mopped up. Spot trucks are now talked about in a wide range from Euro 930-990 per tonne DDP, although at this time most are being done around the middle of the band. Bulk volumes seem to be non existent at this time.
29 August 2007
First September MEG WECP Settlement at Euro 905 per Tonne DDP
There was a settlement today between a major EOMEG producer with 3 sites and a PET producer in the Netherlands. This settlement reflects the events in the Far East and changes to exchange rates – and much tighter MEG markets in Europe. The August settlement was Euro 836 per tonne in the end. Asian spot MEG prices have faltered and come off as caution enters into the market as PES rates are trimmed. PES producers are watching the PTA price reductions and playing a waiting game. Spot values at this time are around $1200 per tonne CFR and slipping.
29 August 2007
US Contract Ethylene Settles for August
The US contract ethylene price has now settled for August up 1¢. Our published range moves up from 47-49.5¢/lb delivered to 48-50.5¢/lb delivered. The US EO market range for August is 56.3-78¢ /lb. FOB and the EO market average is 70 ¢/lb. FOB.
21 March 2007
Pertamina to acquire Polyprima PTA plant
According to market sources, Indonesia´s state company Pertamina is preparing to submit an indicative offer to acquire Polyprima PTA plant with the capacity of 480,000 tonnes. Polyprima is currently running at 70% with the strong paraxylene support from Pertamina. Both companies are said to be keen to close the deal within a few weeks.
21 March 2007
Radici Worldbest in Changzhou announced bankrupt
Radici Worldbest, a PET producer in Changzhou, China, has been announced bankrupt on 16 March 2007 and its Italian shareholder withdrew from the company. It is rumoured that China Resources Petrochemical is considering investing in the company.
01 March 2007
The Indian Central Budget for the fiscal year 2007-08
The Indian Central Budget for the fiscal year 2007-08 was presented to the Parliament this morning.
Highlights
> Import Duty on Polyester Chain and feed stocks brought down to 7.5% from 10%
> PTA, DMT and MEG, polyester chips and PFY and PSF will now attract 7.5% import duty.
> No change in PX, stays at 2%.
> No change in Excise Duty. Stays at 8%. This was brought down from 16% to 8% in last year´s budget.
> Textile Upgradation Fund (TUF) Scheme extended with higher allocation. TUF Scheme also extended to handloom sector.
> Education cess increased from 2% to 3%.
Details and effect will follow soon.
26 February 2007
Spot PX price inched up to $1135-1145
Spot PX price inched up to $1135-1145 FOB Korea on the back of higher crude at $61.41 on 23 February.
26 February 2007
Suppliers reject one major buyer bid
Suppliers reject one major buyer´s bid of $1,060 for March PX ACP.
26 February 2007
Hualian Sunshine #3 PTA unit on operation
Hualian Sunshine´s #3 PTA unit appears to be on commercial operation since 19th February.
26 February 2007
Yisheng domestic PTA list price for February
Yisheng´s domestic PTA list price for February is RMB 8,250 at par with YPC. However, the netback could be as low as RMB 8,115 after the discount and delivery cost borne by the seller.
26 February 2007
January and February PTA contract price in China
January and February PTA contract price in China could end up in a combined settlement. Buyers and sellers are at $860/870 CFR.
26 February 2007
YPC announced February MEG CP
YPC announced February MEG CP at RMB 8,250.
26 February 2007
Polyester filament plants maintained 80%
Polyester filament plants maintained 80% operation, while staple plants were at 65% during the holidays. Filament stock appears to be higher than normal.
26 February 2007
Textile market in Shaoxing reopened
Textile market in Shaoxing reopened on 24 February.
15 February 2007
Liquidation of Hankook Synthetic
The creditors of Hankook Synthetic finally decided on February 5 to liquidate the company. The company was founded in 1987 and began production in 1991. Total filament capacity is 780 tonne/day.
15 February 2007
KP Chemical IPA expansion
KP Chemical announced on February 13 the plan to expand its IPA capacity by 100,000 tonnes to 200,000 tonnes per year. The completion is expected during the Q4 2007. KP will utilise UOP´s Meta Xylene recovery process from mixed xylene.
31 January 2007
Hankook Synthetic Future
According to a local newspaper report on 30 January 2007, the 3 major creditors -Korea Development Bank, Shinhan Bank, and Samsung Petrochemical- to the polyester filament producer Hankook Synthetic met on 29 January and rejected the application for Court Receivership filed by the troubled company. The final decision is expected on 5 February and if the petition is rejected, the 300,000 tonnes per year polyester company will have to be liquidated.
29 January 2007
China PTA import
China´s total PTA import volume for 2006 was 7.0 million tonnes.
29 January 2007
China PTA contract price
Local PTA contract price for January 2007 was revised down to RMB 8,400 from the initial RMB 8,400. February tentative price is nominated at RMB8,400.
29 January 2007
China import PTA prices for January slide
Some of the import PTA prices for January slide to U$870 CFR from the initial U$900 CFR.
29 January 2007
Asia spot PTA bid falls
Spot PTA bid falls to $840 on high inventory built up by large import volume in November and December 2006.
18 December 2006
PTA spot price bid/offer gap narrowed
PTA spot price bid/offer gap narrowed to $875/880 CFR on the back of firm demand from polyester sector and higher paraxylene price ideas for January.
12 December 2006
Idemitsu nominated January 2007 PX ACP
Idemitsu nominated today $1,090 CFR for January 2007 PX ACP, which is $60 higher than December ACP of $1,030.
04 December 2006
November PTA local contract price in China settled
November PTA local contract price in China settled at RMB 8,650 per tonne delivered, 90 days bank acceptance by YPC. Other local suppliers settle mostly at the same price.
04 December 2006
December PTA contract nomination same as November
December PTA contract nomination at the same price as November settlement of RMB8,650.
04 December 2006
Nomination for December CP for imported PTA
Nomination for December CP for imported PTA is $910 CFR.
04 December 2006
December PTA spot market is sluggish
December PTA spot market is sluggish with a wide gap in price ideas. Buyer/seller at $860-880 CFR 90 days.
04 December 2006
Zhejiang Yisheng to build a PTA unit in Dalian
According to an unconfirmed report, Zhejiang Yisheng is planning to build a PTA unit in Dalian employing Hitachi technology.
28 November 2006
December ACP partially settled
December ACP partially settled at 1030 CFR between JE and Mitsui Chemcial.
28 November 2006
PTA December CP nomination
PTA December CP was nominated 910 by Mitsubishi.
27 November 2006
Indorama Group announces pet investment in Egypt
Indorama Group announces a 300,000 tpy pet investment in Egypt
Indorama Group has decided to install a new continuous plant for production of PET RESIN with a capacity of 300,000 tons per year in Egypt. The total investment outlay is expected at US$65 million.
Indorama believes that this facility between Alexandria and Cairo will be one of the most competitive sites for the production of PET RESINS in terms of both initial investment cost as well as in terms of operating costs. Egypt geographically is well situated to better serve customers in Mediterranean region, Europe as well as Pan African region. The expanded capability will enable Indorama to produce a more diversified range of products and optimize its costs position. The plant is expected to be commissioned in 2008.
22 November 2006
PTA offers retreated
PTA offers retreated to $880/RMB8350 on November 21, after reaching the peak of $900 CFR.
09 November 2006
Yangtzi Petrochemical starting up #2 PTA unit in Nanjing
Yangtzi Petrochemical is in its final preparation stage of starting up its #2 PTA unit in Nanjing, China. It is reported that the 600,000 tones per year plant employing Invista technology is ready for commercial production in late November 2006.
09 November 2006
Reliance Industries bidding for BP Belgian refining
According to the article in the Times of India dated 9 November 2006, Reliance Industries are understood to have bid for British Petroleum’s (BP) Belgian refining and petrochemical assets valued at $2-3 billion. RIL made the offer during a meeting between its chairman Mukesh Ambani and visiting Belgian Prime Minister Guy Verhofstadt on Tuesday, sources said. The company is believed to have offered to buy BP Plc’s refinery and petrochemicals facility in the European country. RIL Board is meeting on Thursday to approve a proposal for raising two billion dollars (about Rs 9,000 crore) for making investments in oil and gas business. The funds could be raised by way of Foreign Currency Convertible Bonds, syndicated loan or fixed or floating bonds.
06 October 2006
October Paraxylene ACP settlement
Subsequent to the initial paraxylene ACP settlement for October reached at the EPCA meeting between CAPCO and ExxonMobil, agreements have also been reached in Japan between the buyers and sellers at $1,260 per tonne. This is a drop of $140 from the September ACP of $1,400 CFR per tonne. PTA producers are said to be aiming to settle both September and October prices at $1,060 CFR, which if successful, would achieve a two-month average spread of $183.
06 October 2006
The start up of Hualian Sunshine
The start-up of Hualian Sunshine´s #2 PTA unit (600,000 tonnes per year) is imminent followed by #3 unit (with the same capacity) in November. Yangtzi and Yisheng´s second plants, both 600,000 tonne capacity, employing the same technology are also expected to start up in November.
05 October 2006
Asian paraxylene spot price dropped
Asian paraxylene spot price sharply dropped on Wednesday, October 4, amid very thin trading volume. A $1210 CFR Taiwan November was heard done followed by $1190 CFR, although buyer and seller are unconfirmed.
05 September 2006
Asian PTA and chip prices dropped
While the Asian PX spot offers rose to $1,500 CFR October, PTA and polyester chip price began its descent in the first week of September. PTA price in China declined by RMB50 to RMB11,050 and fibre grade chip dropped by RMB20 to RMB12,930.
28 August 2006
MX continued its downtrend
Mixed xylene continued its downtrend on Friday, August 25. One parcel was reportedly taken at $1,045 CFR Taiwan for Oct delivery, $30 lower than a day earlier.
28 August 2006
September PTA nomination in China
Mitsubishi and Mitsui nominated $1,200 CFR for September PTA contract price in China. Spot price ideas in the range of $1,150-1,180.
28 August 2006
Asian paraxylene market stabilised
Despite the weakening mixed xylene value, Asian paraxylene market was stable on Friday. Spot buying indications were heard at $1490 CFR for September.
19 July 2006
The August PX ACP has been settled today
The August PX ACP has been settled today between Japan Energy and Mitsui/Samsung at $1,200 CFR. It is a $50 increase from the July ACP of $1,150.
19 July 2006
Bullish PX sentiment is driving PTA spot price higher
Bullish PX sentiment is driving PTA spot price higher to the psychological barrier of $1,000. Inter-trade deal is said to have been done at $1,000 CFR today.
03 July 2006
PTA price in China is showing some sign of stress
While the paraxylene spot price ideas continue to inch forward to $1,300 CFR, PTA price in China is showing some sign of stress. End users are partially taking contract volumes at $970-980 to leverage with cheaper spot cargos in the range of $950-960
30 June 2006
Indorama PTA plant in Mab Ta Phut was shutdown
Indorama´s PTA plant in Mab Ta Phut was shutdown on June 21 due to power failure. Restart is expected on July 1.
20 June 2006
July PX ACP was settled today
July PX ACP was settled today between a Japanese supplier and major buyers at $1,150 CFR. This is a $100 jump from June contract price.
20 June 2006
PTA contract price in China nominated
BP nominated $980 for PTA contract price in China.
15 June 2006
NPCC nominated July paraxylene ACP
NPCC nominated today $1150 for July paraxylene ACP. It is a $100 increase over the June ACP.
06 June 2006
TPPI Indonesia began on-spec PX production
TPPI, Indonesia began on-spec PX production during the first week of June 2006 and is said to be building up inventory for shipment within a couple of weeks.
06 June 2006
Resistance to the June PTA contract price of $880
Resistance to the June PTA contract price of $880 ebbing away as PX spot sours close to $1300 CFR.
31 May 2006
Asia PTA spot price
PTA spot price in Asia rose to U$860 CFR China with further strengthening potentials.
31 May 2006
June PTA contract price nominated in China
BP and Mitsubishi nominated U$880 CFR for June PTA contract price in China. If this price is accepted, PTA margin improves to $187 over PX ACP of U$1,050.
16 May 2006
Exxonmobil nominated $1,120 for June PX ACP
Exxonmobil nominated $1,120 for June PX ACP. Settlement for May was $1,020.
15 May 2006
Hualian Sunshine PTA #2, 3 delayed
Hualian Sunshine PTA #2, 3 delayed. According to a company source, the start up of #2 unit has been pushed back to December 2006 and #3 to February 2007. The reason is not disclosed but insufficient feedstock is suspected.
15 May 2006
BP Zhuhai #2 unit has been approved by the NDRC
BP Zhuhai #2 unit has been approved by the NDRC. Completion of 900,000 tonne per year PTA plant is expected by December 2007.
18 April 2006
May ACP Nomination
ExxonMobil and Japan Energy nominated $1060 CFR Asia for May 2006 paraxylene ACP. April nomination was $990 against a roll over settlement of $950.
07 April 2006
April Paraxylene ACP Roll-Over
Japan Energy settled April ACP at $950 CFR with its major accounts, unchanged from the March contract price. Meanwhile, another major supplier is said to be holding out $970 CFR.
07 April 2006
April PTA contract price in China
April PTA contract price in China increased to $810 but PTA margin remain unattractive.
07 April 2006
April Asia Spot PTA price
Spot PTA price in April firmed up above the contract level to $815-820 as end-users begin restocking ahead of May holiday.
07 April 2006
April PX ACP
PX ACP for April was settled at a roll-over of $950 while spot continues to be bullish in the range of $1,000-1,020 FOB Korea.
03 March 2006
USA to launch anti-dumping investigation on Chinese PSF
China´s Chamber of Commerce for Import & Export of Textiles announced on 27 February that a preliminary meeting was held in Ningbo between USA and China to review the anti-dumping policies and preparation of response strategies. It reported that US is launching anti-dumping investigation in late March or early April on polyester staple fibre exported from China. More details can be found at http://www.ccct.org.cn/ccct/ccct/showmsg.jsp?trrfnum=yw17&msrfnum=yw17000002
01 March 2006
Sentiment in Asia crumbles
In China one spot PTA deal was reported done at RMB 7,900 ($788) on February 27. Spot PX bid/offer at $940/980 CFR for April.
27 February 2006
Heavy PTA shutdown schedules in March
Samsung PTA plans a turnaround for #1 unit (200,000 tpy) from March 13 for two weeks. Samnam #3 and 4 PTA units with 500,000 tpy capacity each are scheduled for 1 week and 2 weeks shutdowns respectively in March.
27 February 2006
March 2006 PX ACP Initial settlement
BP and NPCC have reportedly reached an agreement for March ACP at $950 CFR, $40 lower than February.
22 February 2006
China to Keep Yuan Basically Stable in 2006
The People´s Bank of China made the pledge in its Q4 2005 Monetary Policy Report, released on its website on 21 February, while outlining objectives for the coming months. China´s central bank vowed to keep the exchange rate "basically stable" in 2006 while allowing market forces to do their work, within limits. Initiative will be taken to improve the managed float system in a gradual and controllable manner, and in accordance with the need for the stable development of the nation´s economy and finance. The report also claimed to keep the yuan basically stable at a reasonable and balanced level, allowing the market forces to exercise their basic functions in forming the exchange rate.
17 February 2006
PTA spot ideas in China further declined
February 16, 2006: PTA spot ideas in China further declined to $820-830 level while the contract suppliers are holding $850. The initial contract price nomination for February was $890 but the LC open price range is $840-850.
13 February 2006
February China PTA Contract Price
Contract PTA price in China is not able to hold $860 for February as the demand stays soft. Tentative L/C opening price is reported in the range of $840-850.
13 February 2006
PX bid/offer ideas on February 10 declined
PX bid/offer ideas on February 10 declined to $970/995 CFR China or Taiwan for March.
23 January 2006
February PX ACP Settlement
February 2006 Paraxylene ACP initially settled between ExxonMobil and Mitsubishi at $990 CFR. It is a $90 per tonne increase over the January price of $900.
16 January 2006
Taekwang #2 PTA Project
Taekwang is expected to forge ahead with the second 500,000 tonnes per year PTA project despite unfavorable PTA margin forecast. Reactor delivery is scheduled for the middle of 2007 but the company is still in negotiations with the vendors for the compressor, heating oil heater and agitators.
16 January 2006
February ACP nomination
Initial nominations for Paraxylene ACP for February 2006 were announced today by major producers. NPCC $1000, Idemitsu $1030, ExxonMobil $1040. The lowest nomination is $100 higher than January ACP reflecting the strong demand from the PTA sector
13 January 2006
Mangalore refinery tenders mixed xylenes to sell
Mangalore Refinery and Petrochemicals(MRPL), a subsidiary of ONGC India, is inviting proposal to purchase its surplus mixed xylenes. MRPL is in the process of refinery upgrade to meet European gasoline requirement which will provide 240,000 tonnes per year mixed xylenes beginning from August 2006.
12 January 2006
PBT plant in Malaysia ready to start-up
Toray BASF PBT Resin joint venture in Kuantan, Malaysia is near to mechanical completion in January 2006 and is expected to be fully operational in February. With the total production capacity of 60,000 tonnes per year, Malaysia´s PTA demand is to increase by as much as 45,000 tonnes per year. Polybutylene Terephthalate (PBT) is mainly used in automotive parts, mechanical engineering and electrical components.
12 January 2006
Asian PX spot inches up
Asian PX spot inches up amid strong PTA demand recovery. Offers from major traders are $1050-60 CFR Taiwan for February and March delivery. Firm bid is at $980 FOB Korea for February.
12 January 2006
PTA and MEG spot inquiries subsided
PTA and MEG spot inquiries have subsided as the lunar new year holiday approaches. PTA spot is only at $835 CFR, only $5 above the contract level.
11 January 2006
Hualian Sunshine 2 PTA plants start up in August and October 2006
Hualian Sunshine´s 2 PTA plants employing Invista technology with the capacity of 600,000 tonnes per year each are expected to start up in August and October 2006. The plant design is identical to Yizheng #2 and Yisheng #1 that were completed in 2005.
11 January 2006
TPPI Ready to Feed Condensate
Trans Pacific Petrochemical Indorama (TPPI) is almost ready to start-up its condensate splitter in Indonesia in February 2006. The first parcel of condensate is expected to arrive in Tuban, Indonesia in late January. UOP´s aromatics unit with the annual capacity of 550,000 tonnes paraxylene, 210,000 tonnes benzene, 100,000 tonnes toluene and 120,000 tonnes orthoxylene is planned for commissioning from April 2006.
05 January 2006
PX ACP January 2006
PX ACP for January 2006 was settled at $900 CFR by major accounts. Initial nominations were $950-970.
14 December 2005
Invista Taiwan T10 PTA unit shut down
On December 12, Invista Taiwan´s T10 PTA unit (550kta) was shutdown due to a mechanical problem. The nature of the problem is suspected to be associated with dehydration tower. Estimated repair time is less than 2 weeks but the line will remain shut for a month to carry out the scheduled turnaround in December.
07 December 2005
Mitsui, Mitsubishi Chemical accepted $840 as PX ACP December
Mitsui, Mitsubishi Chemical accepted $840 as PX ACP December with major suppliers but one major buyer rejected, still demanding lower price.
07 December 2005
Mitsubishi announced December PTA CP
Mitsubishi announced $800 CFR for December PTA CP In China.
29 November 2005
December PX ACP negotiation in stalemate
December PX ACP negotiation in stalemate. PTA side is demanding some kind of compensation for the squeezed margin during October and November. Buyers´ idea is close to $800 while the nomination stands at $960.
29 November 2005
On the back of a very soft PET market
On the back of a very soft PET market, European PTA operating rates start to be hit, PTA sellers report sales softening.
08 November 2005
PTA stock level is rising rapidly
PTA stock level is rising rapidly at the producer-end as Chinese buyers wait for further price decline in November.
08 November 2005
Korea and Taiwan end-October PTA stock
End-October PTA stock in Korea and Taiwan is estimated at 270,000 tonnes, more than twice the normal level.
08 November 2005
Chinese PTA end-users asking for Korea/Taiwan contract cargo
Some Chinese PTA end-users quietly asking for contract cargo shipments from Korea and Taiwan, an evidence of low PTA stock level in China.
08 November 2005
Asian spot PX quotations
Asian spot PX quotations rally around $900 FOB or CFR in the second week of November.
08 November 2005
PX stock in Asia is rising
PX stock in Asia is also rising as PTA demand and consumption is subdued.
20 October 2005
US-China Fail to Reach Agreement Over Textiles
The latest round of talks aimed at resolving the textile trade dispute between China and the US ended on the 13 October without a deal being reached. Both sides blame each other despite encouraging signs in previous talks.
18 October 2005
Agreement Between the Europe and China on Chinese Textiles
On 7 September 2005, Europe member states agreed to allow the release of blocked Chinese apparel. The result will see the Europe taking most of the burden as 2006 quotas will remain largely untouched by the deal.
11 October 2005
October PTA CP in China
October PTA CP in China is met with resistance from the buyers. Announcements were made in the range of $880-890 CFR 90 days but buyers are insisting on $860-870.
11 October 2005
Paraxylene October ACP
Paraxylene October ACP settled at $1000 CFR.
11 October 2005
Asian paraxylene shipped to USA
A large quantity of Asian origin paraxylene is shipped to USA for November arrival post refinery shutdowns caused by Katrina and Rita.
07 October 2005
Hurricane Rita as bigger disruption for US MEG
Hurricane Rita now seen as bigger disruption for US MEG than Katrina. Total lost MEG now estimated to be 80,000 tonnes in September and 100,000 tonnes for October. Natural gas supplies seriously disrupted.
07 October 2005
October US MEG pricing
US spot prices hit $1540/tonne FOB for 500 tonne parcels and higher for tanktrucks. Large volumes arriving from Asia and Canada will partially fill needs at end of October. Average import prices for minimum 1000 tonnes volumes average $1150 per tonne for October arrival.
07 October 2005
Two US MEG producers out
At least 2 major US MEG producers expected to be out for most or all of October.
07 October 2005
US ethylene price movement
US ethylene rises 8.5 cents from July to September with 10 cent increase nominated for October.
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