Polyester Chain Price Forecast In Asia – November 2012

Crude oil prices had slumped 4.2% in the last week of October on concern over rising crude oil inventories in the US and concerns about Spain and tepid global demand limited gain for the US crude contract. However, prices would recover from the decline as supportive US economic data coupled with North Sea and Nigerian production problems yielded some relief to the slowdown.

Ethylene markets would remain under pressure due to weak demand, and would no longer remain influenced by the rise in US prices as it did in October. Paraxylene position in Asia would remain firm on strong demand, but PTA margins are likely to squeeze severely. Margins will continue to struggle to get above US$100 versus 50-50 spot-contract paraxylene. MEG’s first announcement for November shows a hike of US$20-50 over October numbers. MEGlobal had announced contract price for October at US$1,230 a ton.