Eroding Polyester Margins in Q4 Lead Paraxylene Prices to Nosedive for Three Consecutive Months in South Korea
Market participants of Paraxylene (PX) have been speculative regarding their offtakes in December as the demand from downstream PET and polyester segment has failed to showcase any significant recovery throughout Q4 in South Korea. Drag in Polyester polymerization rates due to power rationing in the nation has led to higher inventory levels of feedstock PTA, the situation has compelled traders to allow consistent negotiations in order to destock existing inventories before year-end. Paraxylene-Naphtha spread has narrowed drastically in Q4 2021 in majority of Asian countries. Under pressure of poor economics, various Paraxylene producers either shut or implemented a temporary cut in the operating rates in October and H1 of November. As per the revealed stats, several producers based in South Korea reduced their production rates by nearly 10% in late October. However, the resumption in plant operations by Lotte and GS of South Korea in late November has flooded the market which has fur...