RIM Market News >  Asian Viewpoints

Forecast of PX market in China

2019/03/15 12:00

The paraxylene (PX) market was showing upward trend after the Lunar New Year holidays in February with high crude oil prices and turnaround at PX plants considered to be bullish factors. But market players are not necessarily optimistic about the market as many new PX plants would be constructed. The firm crude oil market is at present supporting the PX market. Supply would be reduced since many PX facilities planned to conduct turnaround in the April to June period. The turnaround schedule for PX facilities during the period is as follows.

 

Country

Company

Capacity (mil/mt)

Turnaround timing

Period

Korea

Hyundai Oil

0.80

Apr-May

30 days

Thailand

PTTGC

0.54

May

45 days

India

Reliance

1.80

Q2

unknown

China

Luoyang PC

0.225

Apr

2 months

Liaoyang PC

0.70

May-Jun

45 days

Wulumuqi PC

1.00

May-Jun

2 months

 

On a demand side, amid firm demand for purified terephthalic acid (PTA), buying interest for PX is increasing along with concerns over a downward trend for supply of PX, a feedstock for PTA. Also, the start-up of new PTA facilities and resumption of PTA facilities of Sinopec Yangzi Petrochemical Company and Yizheng after turnaround are responsible for the increase in demand for PX. But since large scale PX facilities are expected to come online in the future in China, demand for imported PX might decrease. The start-up schedule for new PX facilities in China is as follows.

 

Company

Capacity (mil mt)

Timing

Hengli PC

2.25

April

Zhonghuahonglun

0.80

May

hengyi PC

1.50

July

Hainan Refinary

1.00

Test runs to start in Jun.

Lianhe PC

1.00

Q4

 

When production starts at these new facilities, the market might fall due to a strong sense of ample supply.

 

Tokyo : LNG Team  Kin Setsubai  +81-3-3552-2411
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