Polyester Chain Price Forecast In Europe and USA – November 2012

The oil markets received good support end of October after the US gross domestic product expanded at a 2% annual rate in the third quarter while Economists polled by Reuters expected growth a tad lower at 1.9%. Further, the conflict in Syria and associated violence in the region, along with the dispute over Iran's nuclear program, added support for crude ahead of the month end especially for Brent.

In US, spot ethylene price was up on talks of unexpected shutdown at Exxon Mobil’s Baytown, Texas olefins plant complex which may send prices up in November. European ethylene spot market may slip lower as supply issues and feedstock prices will ease in November. In Europe, spot price will remain stable due to light demand, cheaper feedstock and increased availability. In US, spot paraxylene may look up on increased buying interest while supply would remain tighter amid weak demand. In US, MEG prices will move higher for November, but not as much as expected after MEGlobal restated its upcoming North American benchmark contract price, announcing US cents 2 per pound increase.