HOUSTON, Dec. 7, 2010 /PRNewswire/ -- Chemical Market Associates, Inc. (CMAI) announces the completion of the 2011 World Paraxylene & Terephthalates Analysis, an annual global study that covers historical trends and future projections for supply, demand, production, capacity, trade, pricing and profitability of the global paraxylene and PTA/DMT industries for the period 2005 to 2015. Included with each analysis is 12 months access to CMAI's online capacity and supply/demand databases with a mid-term supply/demand update, incorporating CMAI's latest market outlook. The analysis is a necessary resource for business managers and planning professionals who need to make strategic business decisions in a rapidly changing global economic and market environment.
After a contraction in 2008, global demand for PX rebounded and grew in 2009, followed by more in 2010 on the back of a rebounding fiber market primarily in Asia. Despite growing self sufficiency in Asia, global trade grew for most of the last five years, settling slightly in 2010 as the Middle East supplanted the U.S. Gulf Coast as the incremental source of supply.
Net PTA trade volumes between regions rose marginally in 2010, as Northeast Asia moved towards a balanced PTA trade position, and Europe's net imports increased. North America continues to be a net exporter of product to South America and some volume to Europe, primarily out of Mexico.
The majority of PX and PTA rationalizations are expected in Japan, where export-oriented assets were built some time ago and are being supplanted by new, large assets in their target markets, primarily China. Europe will likely see a small portion of reductions, as well. With the idling of PX and PTA assets at BP and PX assets at Chalmette in the U.S., the North America region has likely already seen most of its rationalization, but there could be a small rationalization in the near future. Future PTA capacity additions will continue to be concentrated in China, although countries like Brazil, Poland, Portugal, Russia and Saudi Arabia have also announced plans to build PTA facilities during the forecast period in order to support their local polyester production.
The ultimate end uses for PX and terephthalates are polyester fibers and packaging, and they remain the preferred choice in the majority of the markets they serve. As global wealth rebounds and improves, textile needs will grow as well. There is currently no other single natural nor synthetic fiber to meet those needs other than polyester. Polyester fibers are the most economic, most versatile fibers in the market place today.
Similarly to production, Northeast Asia also accounts for the largest share of global PTA demand. The shift of textile and more recently automotive and other industrial manufacturing to Asia encouraged the migration of polyester production from the more developed regions, such as West Europe and North America to countries like China, India, Thailand, Indonesia and increasingly, also Vietnam. Strong economic growth in the emerging markets for beverage bottles also sparked growing demand for PET bottle resins. DMT markets will continue to decline in the future as more and more DMT-based polyester production is idled in favor of PTA based production.
To find out more about the market issues and CMAI's outlook for this industry, order the 2011 World Paraxylene & Terephthalates Analysis now at www.cmaiglobal.com. The analysis is presented in book and CD-ROM format, along with access to CMAI's online capacity and supply/demand databases. Updates to the capacity database are available to clients throughout the year as they occur, and a bi-annual update to the supply/demand database provides a fresh view as the markets develop. Clients benefit from the up-to-date market information which is necessary for strategic business decisions.
CMAI is the premier provider of Market, Planning and Business Advisory services offering a unique combination of consulting analytics and expertise for the global chemical, plastics, fibers and chlor-alkali industries. With offices in Houston, New York, London, Dubai, Dusseldorf, Bangkok, Singapore and Shanghai, CMAI has provided expert business advisory services to a broad base of companies across multiple value chains and geographies since 1979. Clients to CMAI services include chemical and oil companies, technology & EPC companies, law firms, banking and financial institutions, plastic converters, textile & apparel manufacturers, brand-owners, grocers/retailers, government agencies and trading companies.
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SOURCE Chemical Market Associates, Inc. (CMAI)