PX capacity expansion in 2019

The increase in domestic capacity has elbowed out some imports. China’s PX imports see year-on-year drop since this May.

Asian PX plant operating rate is still high without large cuts, as producers intend to maintain market shares and PX-naphtha spread hovers around break-even line. However, new plants are expected to come on stream and there are concerns over the demand from polyester sector, hence, PX market is more likely to remain in the stalemate, despite that the inventory has been decreasing for 4 consecutive months in China.