Purified Terephthalic Acid (PTA) prices in China witnessed a fluctuating trend in the second half of February. Though the high price of the commodity is deterring buyers from resuming procurement, the market remained busy and the demand may pick up further. Demand for PTA would be enough to meet the current supply. Therefore PTA prices are expected to remain healthy.
Monoethylene Glycol (MEG) prices witnessed a fluctuating trend during the second half of February as well. MEG prices started declining from mid February, which continued before rebounding toward month end. Supply concerns for MEG are over but couple of plant shut-downs in Singapore and India might disrupt supply. As the number of polyester plants are increasing capacity utilisation after the Lunar New Year holidays, MEG demands will increase gradually. However, the high price of the commodity has damped demand and therefore demand for the commodity might be determined by price in the short term.
Polyethylene terephthalate (PET) prices witnessed a marginal downward trend as raw material prices back tracked. Demand for PET chips is good but high prices kept the buyers in dilemma on procurement decisions. However as lower offers emerged in the market buying volumes might improve substantially. Chip prices are expected to move in line with raw material prices in the coming weeks.