How Downstream Industries Are Influencing the Prices Of PTMEG
- 10-Jun-2022 3:56 PM
- Journalist: Jai Sen
Shanghai: The PTMEG (Poly Tetramethylene Ether Glycol) market climbed in the first week of June with few agreements’ futures rose due to rising demand and sluggish supplies, and spot prices remained stable in the early week. Due to the lack of PTMEG, domestic industrial producers felt the pinch as the weight of insufficient Polyester inventories mounted. In the aftermath of rising raw material BDO costs, the market was said to be experiencing severe pricing sentiments. PTMEG prices climbed in June.
PTMEG prices grew and remained constant. The downstream PBAT and THF industries saw an increase in demand on the global market. The continual rise in product pricing was due to the manufacturers' logistical and supply chain restrictions. Due to a paucity of supply and high demand from the downstream Polyester industry, prices remained rangebound during the quarter. The Russia-Ukraine geopolitical problems impeded other difficulties, such as inflationary and cost pressures, as well as worries about trading behaviour. Upstream BDO pricing has the biggest impact on PTMEG prices in both the domestic and foreign markets. PTMEG prices were stable.
Logistics in Zhejiang, Jiangsu, Fujian, and Guangdong had recovered to late-March levels by mid-May. The transportation sector has improved, but upstream and downstream market pressures have hampered the PFY (Polyester Filament Yarn) industry. In the current scenario of the ongoing conflict between Russia and Ukraine, changing the pattern of constricted supply of foreign items on the market is challenging. Other countries' demand for polyester is robust, and the United States still has to acquire extra raw materials due to a scarcity. As crude prices stabilised, the naphtha-PX-PTA chain grew steadily, and MEG prices rose as fundamentals improved, the total cost of polymer raw materials increased.
A global energy supply constraint caused by the Russia-Ukraine conflict was at the root of the problem. As a result, it was clear that the cost side was on board. PTMEG prices accelerated their rise in May, owing to rising raw material prices and the need to reduce losses.