India’s paraxylene (PX) exports increase as a result of the country’s national lockdown since March 25 which forces domestic purified terephthalic acid (PTA) plants and downstream polyester factories to shut. Despite the lockdown, market sources told SSESSMENTS.COM that Reliance Industries had not lowered PX production from its Jamnagar complex.
Meanwhile, OMPL’s 920,000 tons/year PX unit in Mangalore has been under maintenance since late March and is scheduled to resume operations at the end of April or early May. India’s total PX nameplate capacity stands at 5.7 million tons/year, which comes from its three producers: RIL, OMPL, and IOCL. Domestic PX demand reached approximately 4.2 million tons in 2019, while PX exports were 2.76 million tons, of which 60% went to China.
Market participants informed SSESSMENTS.COM that Rising PX supply from India weighs on discounts for CFR China cargoes. May-June cargoes are discussed at discounts of about $16-20/ton to spot CFR China/Taiwan prices, rising by $13-$14/ton from late last month. Discussions for June deliveries are hovering at discounts of $16-18/ton to CFR China/Taiwan assessments.
