Asian p-xylene margins in the red Lower upstream costs could soon return producers to breakeven

摘要

Asian para-xylene(p-xylene)margins fell to multiyear lows in June,and they trended even lower in July,despite high demand into purified tereph-thalic acid(PTA)and strong polyester operations,according to analysts at IHS Markit.Production capacity has surged ahead of demand,and with Chinese producers pushing out imports,the result could be a degree of rationalization,at least for the near term,they say.The market is currently being driven by absolute price rather than product margin,notes the IHS Markit Global PET Stream-Monthly Market Report."There has been a significant build-up in inventory,not only for p-xylene,but across the value chain,including purified terephthalic acid(PTA)and downstream textile products,leading to market players trying to support prices of all products in the value chain.However,the large capacity buildup in China is restricting demand for imported cargoes and is putting a cap on p-xylene prices in turn."