PX Market Tight Supply, Short-Term Situation Is Grim

At 18:56 on April 6th, the oil leaking explosion occurred in the Tenglong arene xylene unit in Gure, Zhangzhou.

Aromatic xylene is an important market supply and demand.

How much impact will the industry produce on the related products and downstream market after the accident? The industry is highly concerned about this.

The aromatics xylene plant in Tenglong, Gure, Zhangzhou, mainly produces PX (p-xylene), which is an important raw material for polyester.

PX's annual output is about 30000000 tons, about 98% of which is used to produce polyester.

The vast majority of polyester is used in the production of polyester, and in part for the manufacture of beverage bottles.

PX products are in short supply in the domestic market. According to statistics, in 2014, China consumed 17 million 660 thousand tons of PX products, of which 9 million 80 thousand tons were imported.

China

The responsible person told the media that PX is the largest import product in China's chemical fiber raw materials, and is mainly used for downstream polyester production.

Due to limited domestic capacity, about 60% of PX products in China depend on imports to meet production needs.

The Zhangzhou Gure Tenglong oil spill fire accident will further exacerbate the imbalance between supply and demand of the market, causing the market price of related products to rise.

It is understood that Gure Tenglong aromatics PX capacity accounts for a large proportion of China's PX total capacity, and will have a direct impact on the normal supply of PX in China.

If the demand of some contract users can not be met normally, the enterprise can only purchase raw materials from the spot market, or look for other domestic PX manufacturers to obtain the supply of goods, or even more seriously rely on imported raw materials.

If other PX manufacturers take advantage of this to raise the selling price of PX, PTA will once again face the high price of upstream raw materials.

Market analysts believe that the oil spill fire accident will directly affect the PX supply and push up prices.

In addition, because PX is an important raw material of PTA (PTA), its shortage also causes tight supply of PTA.

If the price of PTA raw materials fluctuates in April, the price of PTA will increase obviously due to the accident, then downstream polyester.

The gross profit of enterprises will definitely be affected obviously.

In the long run, due to the acceleration of new PX production in Asia since 2013, the supply of domestic PX has shifted from tension to loosening, which will not cause long-term pressure on domestic PTA enterprises.