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(ICIS) --
Players in the paraxylene (PX) and orthoxylene (OX) markets in Asia are bracing
themselves for tight suppy in 2012 amid the bleak economic outlook, as the
eurozone continues to struggle with its debt crisis, sources said.
A
deluge of new purified terephthalic acid (PTA) plants in China is likely to tip
the market in favour of sellers, players said. PTA facilities with a combined
capacity of over 9m tonnes/year are expected to commence commercial operations
in 2012, while 1.45m tonnes/year of fresh PX capacities is expected within the
same period.
For every tonne of PTA produced, 0.67 tonnes of PX is
needed.
The PX supply shortage is expected to spill over into the OX market,
as regional makers are likely to tilt production yields in favour of PX. OX is
typically a by-product during the PX extraction process and can be re-isomerised
to maximise PX yields.
“The market is tight and will continue to be tight
[in] 2012,” said a China-based phthalic anhydride (PA) maker. PA is the
downstream product of OX and is used mainly in the plasticiser
sector.
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Most of these contracts were concluded at parity to published
quotes in 2011.
In addition, PTA makers have already reduced their plants’ operating
rates at the end of November to December because of squeezed PX-PTA
margins.
“If there is no demand for PTA, then there is no reason why we
should be operating our plants,” said a southeast Asia-based PTA maker.
mrcplast.com |
