Feedstock | Paraxylene Pricing Overview
Quarterly Update on Global Paraxylene Market
For the Quarter Ending September 2020
Demand in the Asian Paraxylene market gradually dropped under dull offtakes for the derivative PTA due to planned maintenance turnarounds in several PTA facilities. Manufacturers were heard operating at a comparatively lower rate than previous quarter due to the fragile production margins being encountered by the end-use industries. Resumption of operations at certain plants like Dongying Weilian Chemical and Sinopec Hainan in the manufacturing hub China further pressurized the market fundamentals of Paraxylene in the quarter ending September 2020.
Ample supply amidst subdued demand in the region on the back of weakened PTA resulted in an overall dull market of Paraxylene in Q3 2020. Supple inventories of the product left no room for the sellers to spread their profit margins. To assist the hovering fundamentals, few European producers were seen implementing production cuts, but certainly, it was not enough to rebound its hovering sentiments. Owing to the reduced regional demand, spot activities were extremely limited as buyers restrained to buy volumes pressured under the present demand uncertainty.
Market sentiments of Paraxylene remained healthy under restricted supply of feedstock Mixed Xylene due to unplanned shutdown in one refinery followed by maintenance turnaround in another refinery. Shortage of aluminum strengthened the demand for PET bottles and containers thereby propelling the demand for feedstock Paraxylene. However, sudden paucity of the co-feedstock MEG for PET production amidst series of indefinite turnarounds implemented under the fears of Hurricane Laura, created bottleneck for production of PET, thus parallelly lowering Paraxylene profit margins towards the end of the quarter.
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Company-wise installed capacity, production volume and plant operating efficiency is captured directly from manufacturers. Import and Export volume is captured from government sources and demand for Paraxylene is calculated considering the production, import, export and inventory-levels on the country and regional level markets.
Paraxylene price is correlated with the price trend of crude oil, demand-supply fundamentals, and with that of its derivatives such as Dimethyl Terephthalate (DMT) and Polyethylene Terephthalate (PET).
Basic details and information on financial performance of leading global players in the Paraxylene market is presented in a visually captivating manner. Expansion plans and the company’s strategy is also captured to understand the vision and mission of the company to help understand the areas where companies need to focus more.
News & Deals
Daily updates on industry-specific and product-specific news, exclusive primary-based news capturing plant shutdowns/outages/closures, capacity expansions, operating rates, insights on demand-supply situation, awarding of technology licenses, new product launch and deals specifying mergers and acquisitions, strategic investments and disinvestments, to help players capitalize on market opportunity.
ChemAnalyst gathers information through primary research surveys conducted with various Paraxylene manufacturers, spread across the domestic and international market, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global Paraxylene market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global Paraxylene market.
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, traders and importers and customers on weekly, monthly and yearly basis.
Finally, region-specific markets for Paraxylene are analyzed and region-wise demand pattern is tracked.
Paraxylene is an aromatic crude derivative, distilled from the mixed xylene stream. Paraxylene is the supreme feedstock for Dimethyl Terephthalate (DMT) and Polyethylene Terephthalate (PET). The two products are widely utilized to produce PET, which is further utilized to produce Polyester fibers, PET film, and PET solid-state resin. In addition, a minor share of Paraxylene is consumed to manufacture solvents and di-paraxylene and herbicides. Paraxylene is produced through catalytic reforming of Naphtha and extracted from the C8 mixed xylene stream containing Para xylene, Meta xylene, Ortho xylene and Ethyl Benzene. Few other methods to produce Paraxylene are toluene disproportionation and gasoline pyrolysis in a naphtha steam cracker unit. However, the traditional and most well-equipped technology for the Paraxylene rests upon the isomerization of mixed xylenes.