Boosted by higher oil prices, prices of petrochemical products could rapidly rise in the coming weeks. The very strong recovery in US economy is currently resulting in higher global demand for oil, the International Energy Agency (IEA) this week announced. .
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Oil consumption could have risen to a maximum of 1.44 million barrels per day this year on a total market of 78.4 million barrels, the Paris-based body said.
With oil production now stabilized or slightly rising at the same time, oil prices could remain at their currently high level or further increasing. .
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Prices have risen 7.5% since the end of last month as a result of higher demand in the United States where winter could be relatively colder than usual this year. .
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Any increase in oil prices may have an impact on prices of polyester intermediates, especially when capacities are too low. .
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Average price of purified terephthalic acid (PTA) began rebounding in Asia in the past week, as a consequence. Spot prices rose to about US$575 per ton in the Far East by the end of last week, up US$10 from the previous period. .
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The recent rebound in PTA prices is the result of higher paraxylene prices, now above the US$600 level in Asia. .
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In China, PTA prices are now averaging 5,800 yuan per ton, putting pressure for higher prices of polyester products. .
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Prices of other major polyester intermediate mono ethylene glycol (MEG) stabilized in the past week in China at 6,800 yuan per ton after previously falling.As a consequence, prices of polyester staple fibers began rebounding by the end of last week after reaching a low of about 8,900 to 9,000 yuan per ton (US$1.08 to US$1.09 per kilo). .
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Since cotton prices continued falling in the period, price difference between cotton and polyester fibers was lowered from US$1.02 to 96 US cents per kilo. The gap remains relatively high, compared with a difference of 51 cents still observed by mid-September. .
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Other polyester prices continued declining in the past week. .
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Polyester chips were down between 150 and 200 yuan at 8,000 to 8,100 yuan per ton (US$0.97 to US$0.98 per kilo). .
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Prices of polyester filament yarns further declined with POY prices down about 150 yuan at 8,850 yuan per ton (US$1.07 per kilo) in the past seven days while FDY prices fell 250 yuan to 10,000 yuan per ton (US$1.21 per kilo) and DTY prices even decreased by 300 yuan to 10,550 yuan (US$1.28 per kilo). .
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The fall in DTY prices even reached 400 yuan to 600 yuan on Qianqing market in the past ten days. .
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Demand from weaving and knitting industries remained very low in the period, partly depressed by the usual fall in production in December. .
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Yarn processors also avoid accumulating stocks before the end of the year since they expect prices to further decline in the short term.
Date:12/11/2003
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