During the first half of September, paraxylene markets in the United States and Germany were equally challenged due to the balance of weak demand and steady supply. In the United States, exports slowed as a result of cautious procurement policies and sufficient inventories. Domestic demand for PET Resin Bottle Grade and puri?ed terephthalic acid (PTA) remained flat during the week and was not enough to lift any export momentum from overseas. Steady naphtha values and steady manufacturing activity also supported the excess supply situation. In Germany, rising naphtha values were not an influence on Paraxylene values as demand for PET was weak and PTA buyers continued to rely on pre-arrival inventory to fulfil commitments. Although there were reports of congestion at Hamburg ports, inventories remained high and production was regular, meaning availability did not change. On a positive note, mid-month increases were experienced in both regions as supply levels were better balanced, rather than increasing demand. Overall, paraxylene sentiment remained bearish, as markets continued to wait for downstream demand to improve enough to shift market effects.
