India PET Chips Prices Are Likely to Fall By 2-3 Percent Due to Falling Raw Material Prices
India's RIL Cuts PTA, MELT & MEG Prices
The most significant player in the polyester value chain, Reliance, has slashed the prices of MELT, purified terephthalic acid (PTA) further, and decreased the price of monoethylene glycol (MEG). In the previous week, it cut the costs of MELT and PTA but raised the price of MEG. It examines price trends in China along with fluxes in crude oil in order to set prices for raw materials of polyester.
Since Reliance is a major regional player, the Indian market follows its price trends. As per the market sources, MEG at INR 52.20 per kg (-1.00), RIL fixed PTA price at INR 78.50 per kg (-1.40) and MELT INR 85.26 per kg (-1.54). The new polyester raw materials pricing will take effect starting this Saturday.
At the outset of the recent fortnight, the company slashed costs of polyester staple fibre (PSF) to INR 102 per kg by INR 3 per kg. In the domestic market, the prices of blended yarn and polyester are decreasing due to a decline in the prices of PSF and raw materials.
MEGlobal To Bring the Mono Ethylene Prices Down in the Upcoming Month
MEGlobal, the global leader in the production of Mono Ethylene Glycol (MEG) and Diethylene Glycol (DEG), lowered its December contract prices for MEG by around USD 10/MT in comparison to November for the market in Asia, witnessing frail demand from the downstream packaging sector. MEGlobal's price reduction was a result of the condition of the Asian market, which is losing importance.
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MEGlobal is planning to set an independent pricing structure for its Indian clients replacing the CFR China-based prices. As per the latest strategy, the India contract prices will be routinely published by the subsidiary of Equate Petrochemical Company based in Kuwait. The step was taken to delink the nation's MEG contract prices from Chinese CFR costs. As all the Indian MEG contracts are presently priced on CFR China values, it is not possible for manufacturers to be on par with benchmarks.
The company also disclosed that the margins for Mono Ethylene Glycol (MEG) will likely stay hushed in 2023 as the Chinese operating rates have dropped below 60 percent due to the frail demand from its end-use polyester and packaging sectors. Furthermore, the market sentiments for the product have been negatively impacted due to the region's zero-Covid policy.
Purified Terephthalic Acid (PTA) and MEG, are the key raw constituentss for Polyethylene Terephthalate (PET) bottles production. During the winter season, the consumption of PET bottles has lowered. Hence, expecting a decline in consumption, the December contract price for MEGlobal was reduced by USD 10 per tonne below November levels.
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Also, it is anticipated that due to the recent observation that MEG demand from its derivative markets was sinking, the Indian market contract price has been lowered by MEGlobal for December 2022. Hence,ence it relaxed the domestic market price for MEG. Also, due to the downtrend in its demand, the Indian contract price was put to stay down even during the beginning of 2023.
According to Procurement Resource, Reliance palliated prices of MELT, purified terephthalic acid (PTA), and monoethylene glycol (MEG) following the price trends in China along with fluxes in crude oil. In addition, MEGlobaldropped its December contract prices for MEG following the feeble demand from the downstream packaging sector and the condition of the Asian market that is losing importance.