The explosion took place at Mailao's Formosa Plastics Group factory, Taiwan had an immediate impact on the PET market when spot PX prices and PTA futures rose after the explosion.
What happened on April 7? An explosion and fire occurred at Formosa Plastic's naphtha complex on Sunday last week due to liquefied gas (LPG) leakage from the worn pipe. A PX line with a capacity of 870,000 tons / year at an aromatic plant was affected by the explosion. Sellers raised prices after the explosion, Asian PET sellers increased prices because PX prices went up, the PTA market was strong after the explosion at Formosa Plastic Group's factory and increased energy costs.
Crude oil prices rose to the highest level in 5 months, Rising energy prices are another factor supporting sellers. ChemOrbis data shows that WTI and Brent crude prices are at their highest level after consecutive increases since early March. Chinese PET prices are supported by reduced VAT and limited supply In addition to the support from costs, Chinese sellers also take the motivation from their refusal to pressure sales and domestic demand to improve later. when VAT is reduced on April 1. A Chinese trading company said: "The supplier in China is mainly not under pressure of sales because they have sold out their monthly quotas. Moreover, demand in the domestic market improved after the government reduced VAT on industrial production. Considering all these support factors, the seller is steadfast with his offer. "