MOSCOW (MRC) - A fire at paraxylene plant at Dragon Aromatics in China will lead to an increase in export prices for polyethylene terephthalate (PET) in the CIS countries. Buyers expect PET prices to increase on the back of possible shortages of feedstock for the production of granulate, according ICIS-MRC Price Report. 

 

Traders have already increased export prices by USD45/tonne, compared with the last week's level. Export price for Chinese PET was heard at USD975/tonne FOB China, excluding VAT. Korean PET prices have traditionally been higher.

 

Several traders asked by MRC analysts on Wednesday morning, were not ready to give forecasts. A trader said that in the market there is a sufficient volume of terephthalic acid. However, the impact of the accident will be felt.

 

Market players need time to assess the consequences of force majeure in the factory Dragon Aromatics. Also it is not yet clear physical effects of the explosion. 

 

The current world production capacity of paraxylene are 43.7 mn tonnes/year, according to MRC analyst Igor Grishchenko. The share of the Chinese Dragon Aromatics in the structure of world capacity of paraxylene is 3.6%. Total capacities of the plant Power Plant Dragon Aromatics is 1.6 mn tonnes/year. The company's share in the production of paraxylene in China is 14.2%.

 

Paraxylene is a basic feedstock for the production of terephthalic acid (PTA). PTA is the main ingredient for the production of PET granulate.