Karachi August 19 2022: The PTA prices are anticipated to fall in reaction to the upstream feedstock market says Lotte chemical Pakistan Limited management.
Moreover, high inventories in the downstream polyester sector and recessionary fears may emulate the existing poor demand.
“The domestic Polyester market is expected to feel the ripple effect of the recent wave of inflation as well as the economic uncertainty which has drastically increased the cost of production. Additionally, the curtailed supply of utilities may have detrimental effects on operations across the chain.” Says Lothem Chairman Mr. Sang Hyeon Lee
Going forward, the Crude Oil market is expected to trend lower due to possible demand destruction following global inflationary concerns. However, the low prices may be limited as global supplies are anticipated to tighten further following the sanctions on Russian crude oil by the West. This, coupled with the lack of spare pumping capacity may leave a considerable supply gap in the existing tight market.
Paraxylene (PX) prices are expected to track the upstream Crude Oil market in the next quarter. Additionally, the market may gain length as trade is affected by dampened demand in addition to producers shifting production back to PX as the driving season in the US comes to an end.
