PTA demand gripping in Asian markets – 2 Feb 2015

Asian paraxylene slipped $12.50/mt to $744.50/mt FOB Korea  and $766.50/mt CFR Taiwan/China as on 29thJanuary2015, amid lower crude futures.

Market sources expressed a more bearish view in light of the potential for the Lunar New Year holidays in February to curtail China demand. Nonetheless, an end-user in the purified terephthalic acid sector said "polyester sales have been good.

The inventory for polyester is low so that is a good sign for March [demand], but we are starting to see some polyester [plants] shutting down for Lunar New Year." In upstream markets last week, March ICE Brent crude futures fell 51cents/barrel  to $48.54/b.

PTA demand is moderate to week in Indian market, IOCL decline its PTA price by Rs 2.20 per kg to Rs 42.10 per kg.

In contract price news, state-owned China Petroleum and Chemical Corp., orSinopec, on Thursday nominated its February Contract Price for paraxylene atYuan 5,900/mt, up Yuan 300/mt from its January settlement, market sourcessaid. Based on current exchange rates, the February ACP nomination is equivalent to around $806.50/mt on an import parity basis. For January,Sinopec settled the CP at Yuan 5,600/mt, down Yuan 700/mt from the December settlement.

Counterbids for the February Asian Contract Price nomination were heard below $700/mt CFR, much lower than the $810-840/mt CFR prices initially nominated by the producers earlier this week, sources said.