Member ID:
Stay logged in for 30 days
Forget Your Password?

login CCFGroup App

Insight | Time: May 8 2019 11:03AM
PX-naphtha spread unlikely to repeat 2014's low
Text size
PX-naphtha spread plummeted from its 5-year high to previous average level over the past month. The reason behind it was that new capacity led to expectation of supply glut, though only Hengli Petrochemical has started one PX unit with capacity at 2.25 million mt/yr. On the other hand, additional demand from PTA does not increase without capacity expansion in near term. Therefore, it is inevitable that PX market suffers setbacks, and there is more fresh capacity slated to come on line in the second half year.

In terms of demand, downstream PTA is unlikely to weigh on PX, and thus PX-naphtha spread is unlikely to repeat the bottom recorded in 2014. PTA profit has improved after PX price drops, but is still subdued by plans of new capacity including Sichuan Energy Investment’s PTA project and Dushan Energy’s PTA project. Another restraint to PTA is polyester profit which is quite low. Therefore, PTA-PX spread could rebound to 2000yuan/mt, but it is unlikely to retouch the historical high in 2010-2011.

[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Related Articles
Paraxylene market daily (Dec 13, 2019)
PX market weekly (Dec 9-13, 2019)
Paraxylene market daily (Dec 12, 2019)
Paraxylene market daily (Dec 11, 2019)
Paraxylene market daily (Dec 10, 2019)
Paraxylene market daily (Dec 9, 2019)
Paraxylene market daily (Dec 6, 2019)
PX market weekly (Dec 2-6, 2019)
Paraxylene market daily (Dec 5, 2019)
Paraxylene market daily (Dec 4, 2019)
Review and brief outlook on acrylic market
2019 state cotton reserves sales structure analysis
China PET bottle chip supply demand change and future trend
Operation and development of virgin PSF and recycled PSF
Basic situation of polyester market in Q1-Q3 and Q4 ...
Spandex supply and demand in 2019 and market outlook