Asian PX market volatility weak demand

According to consulting firm IHS recently released " 2014 paraxylene (PX) Global Market Analysis ," the report said , South Korea is a new round of PX boom , the goal is to supply raw materials for China's refined terephthalic acid (PTA) producers. However, worrying that the current Chinese PX demand growth has slowed , and the Middle East and Southeast Asian countries have a large number of new PX capacity will enable Asian PX serious excess supply , causing plant operating rates decline , forcing some uncompetitive device out of the market .
IHS chemical fibers and raw materials for Asian business executives Asif Shi said: " From a historical point of view, Korea PX plant operating rates typically exceed 100% , but considering the large amount of new capacity coming on stream over the next five years in Korea PX production capacity utilization rate is not likely to return to historical levels. global economic downturn reduced the refiners profit, which hopes to increase the weight of heavy petroleum products to compensate for the decline in refining margins . "

Korea PX expansion began in 2013 , HC Petrochemical Company opened a mountain in South Korea 800,000 tons / year PX unit . 2014 , Samsung - Total , SK Global Chemical Korea will have to start the new PX device , total capacity of 3.3 million tons / year. South Korea put the new device will allow PX production capacity from 2012 's 5.3 million tons / year in 2016 to 1050 tons / year.

Asif Shi pointed out that when the manufacturer plans to build PX project , PX demand rapid growth in Northeast Asia , mainly the strong market growth stimulated by polyester . According to IHS Chemical data show ,2008- 2013 , PX demand in Northeast Asia to achieve an average annual growth rate of 9% .Wholesale masking tape


China is a big consumer of polyester ,2008- 2013 new demand to reach 11 million tons / year, total global demand additional 2 / 3 hot demand, especially in 2010-2011 , as soaring cotton prices , cotton and polyester are suitable alternatives. But China has decided to increase production of domestic polyester and PTA materials , reduce dependence on imports.

2008-2013 , China has added polyester production capacity 16 million tons / year, the total production capacity of 36 million tons / year , an increase of 80%, while over the same period in other countries of Northeast Asia New only polyester production capacity 150,000 tons / year. In addition, China also added PTA production capacity of 21 million tons / year, the total capacity of 33 million tons / year , an increase of up to 170 % of other countries in Northeast Asia PTA production capacity decreased by 1 million tons / year.

Asif Shi said demand brought about by the economic slowdown slowdown and the impact of China's massive new capacity coming on stream in the next few years, China's demand for imports PX does not appear fast growth.

In Southeast Asia, three sets of PX device is under construction. The company is Singapore's Jurong Aromatics new set of 80 tons / year PX unit , is expected to put into operation by mid-2014 ; Vietnam is a new set of 350,000 tons / year PX unit , is expected to put into operation in 2017 ; China UCOM Corp. has announced Create a refinery in Brunei and 1.5 million tons / year PX unit , is expected to put into operation in 2016 .

In addition, more projects are under evaluation. Saudi Arabia 2018 will add 4.6 million tons / year PX production capacity. Saudi Aramco Total Refining and Chemical Company located in Jubail set of 700,000 tons / year PX unit will be put into operation this year , Rabigh Refining and Chemical Company of a 1.35 million tons / year PX unit will be commissioned in 2016 , Saudi Arabia a 1.2 million tons / year PX unit Ami is located in Ras Tanura will be put into operation in 2017.Masking tape


According to IHS Chemical said the global PX total production capacity is expected from 2013 's 41 million tons / year in 2018 increased to nearly 60 million tons / year. Average operating rate of decline caused by excess production capacity is expected to increase nearly 3.5 million tons / year production capacity out of the market of old , some old export-oriented Japanese PX devices are most likely to be out of the market .Washi tape


Asif Shi said that in the past few years , due to market supply shortage , South Korea and Japan continue to drive up the price of the goods PX , PX resulting high prices on the international market , are very profitable , Asian PX producers operating better than North America and Europe competitors. However , over the next five years with new capacity coming on stream in the region , the Asian PX profitable gold producer or the end of the period , perhaps even a loss , from the current point of view , the Asian PX market has shown signs of excess supply . Over the past year , the Asian PX market has relatively large fluctuations. IHS Chemical said that in the past year , the Asian PX price fluctuations are mainly due to oversupply and weak demand impact , not affected by market fluctuations in crude oil and naphtha .Sellotape