PX market is weighed down by crude oil price rout as well as increasing supply

In addition, Chia polyester operating rate was low in Jan-Feb 2020, due to the epidemic outbreak. The industry chain was pressured by inventory build-up. PX inventory is rising continuously and sources said that storage tanks are now full.

In March, Zhejiang Petrochemical is expected to keep stable operation, Fuhaichuang’s one 800kta PX line is resuming production, and Sinochem Hongrun’s 600kta unit is restarting as well. China domestic PX output is anticipated to increase further.

Therefore, PX market is weighed down by crude oil price rout as well as increasing supply. The price may rebound in line with crude oil if bargain-hunting investors emerge. However, the industry would still be pressured as demand sags due to the epidemic worldwide.