Published on January 12, 2015

Crude prices continue to doom in international market.  Last week crude prices closed at $48.36 /bbl and Brent at $50.11/bbl. Depletion of crude prices by more than 50 percent in span last six month has affected the petrochemical market globally. Prices of all the petroleum by-products have slashed significantly in recent weeks. The polyester no more remains unaffected by this change. It has been trying to adjust in the changing scenario but could not hold its prices.

Slowdown in the Para Xylene prices has been the major concern for the polyester industry. The chemical is downstream product for MEG. There has been heavy movement in MEG prices in last week.  CFR China MEG prices on Friday closing were assessed around USD 710/MTS, lowered by USD 55/mt in a week. Vulnerability in Ethylene prices has too affected the MEG market. Again there has been major blow in PTA prices as well. This has been the lowest range for MEG in last two years. This has badly affected the polyester, fiber and textile market.  

According to experts this slowdown in crude prices will continue to dominate the global market.  The polyester manufacturers will experience slowdown in profit margins due to per-locating of crude prices.