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Current polyester market in China

2018/11/16 12:00

The polyester market is falling in China as the market for raw materials, high purity terephthalic acid (PTA) and ethylene glycol (MEG), is declining and as inventories are built up amid low demand. Since the downside of the polyester market has been smaller than a fall in the material market, market players can still get profit.

Until the first half of this year, new polyester plants began operation one after another and overall operation rates were hovering high. Meanwhile, with demand staying firm, inventories remained low. But in the second half of the year in the low-demand season, demand would retreat as usual and the market for derivatives such as PTA and MEG would not increase, which would exert downward pressure on polyesters. Under such circumstances, polyester producers had no choice but to reduce production to maintain prices.

Inventories remain high due to sluggish sales of polyester. Therefore, some market sources pointed out that the production reduction in polyesters for a short period would have no impact on the market. Unless the raw material market became stable and demand increased, the polyester market would unlikely recover.

Tokyo : Energy Desk  Kin Setsubai  +81-3-3552-2411
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