Current Year Forecast: Paraxylene Export Value in South KoreaJun 6th, 2017
The recent market research of Korea Petrochemical Industry Association (KPIA) on paraxylene (p-xylene) market includes the forecast for South Korean export activity in this industrial sector. Paraxylene is a basic element for the production of benzene dicarboxylic acid, a semi-product for polyethyleneterephthalate.
The experts predict that in 2017 South Korea will increase the export of paraxylene. Last year export value of p-xylene was estimated at 6,44 million tonnes. According to KPIA estimations, in 2016 domestic producers produced 9,48 million tonnes of paraxylene and this year the production will grow by over 9, 5 million tonnes. This data together with the short-term outlook for paraxylene market was reported at Asia Petrochemical Industry Conference in Sapporo, Japan held on May 19.
The association analysts observe the growth of paraxylene price in Asia in the first quarter of 2017. The factors that affected the price are growing oil prices and the increase in demand for solid polyester. However, there was a considerable price drop in paraxylene price in the mid-March caused by slumping prices at Chinese futures market which respectively were contingent on economic uncertainty at oil market and the contraction of liquidity in China.
The experts expect the recovery of margin and price for paraxylene after the balance of demand and supply has been regained. In the near future, some of the paraxylene producers will return to the market after planned repairs and renovation. In addition, the increase of demand for polyester and manganese will speed the price recovery for paraxylene. Total paraxylene export from South Korea is evaluated by 2.5 tonnes within the previous four months.