Asia PX spot prices recover as production curbs kick in

Asian spot paraxylene prices rebounded Jan. 8 on support from turnarounds and operation rate cuts by producers, sources said.

Platts assessed Asian paraxylene up $12.16/mt day over day at $837.33/mt CFR Taiwan/China at the Asia close Jan. 8, recovering from a steep drop of $16.50/mt Jan. 7, data from S&P Global Commodity Insights showed.

Producers would have to consider curbing output in a bid to remain profitable as margins are abysmally low, traders said.

South Korea's GS Caltex reduced operating rates to around 85% while fellow producer SK Geocentric lowered its rates to around 60%-70%, market sources said.

GS Caltex did not confirm the cut. A source at SK confirmed the move and said operation rates will be reviewed each month.

In China, state-owned PetroChina will start a turnaround at its 2.6 million mt/year PX plant in Guangdong Jieyang Dananhai from the weekend Jan. 11-12. Another domestic producer has also slashed production by around 10%.

"Looks like PX prices will continue to increase tomorrow [Jan. 9]," a purified terephthalic acid producer in Asia said.

"PX [supply] is going to get tight," a trader in Singapore said.

PX production margins have plunged in 2025. The spread between PX and feedstock isomer-grade mixed xylene dropped to a seven-month low of $70.17/mt on Jan. 7 from $102.33/mt Dec. 31, Commodity Insights data showed.

Most producers target a spread of well above $100/mt to stay profitable, although large, newer plants are understood to be able to break even at much lower levels, sources have said.

MX prices saw some support from exports to the US over November-December.

"MX-PX economics looks shaky [so] that might cut some PX supply," a second trader in Singapore said.

PX spot prices were expected to drop through January as downstream polyester activity in China slows before the Lunar New Year festivities.

Many polyester producers in China are set to commence turnarounds for part of their capacities at various intervals through January and February, Commodity Insights previously reported.

Low demand for gasoline blending

Gasoline blending demand ahead of the US summer driving season looks fairly weak and PX producers would have to take some drastic steps to revive margins, sources said.

Platts, part of Commodity Insights, assessed the PX-naphtha spread at $169.83/mt at the Asia close Jan. 8. A spread of around $300-$350/mt is considered breakeven for most producers.

While the move to cut operation rates was well-received, it reflects the weak PX demand outlook for blending into gasoline, another PTA producer in Asia said.

"South Korean suppliers are not used to cutting operation rates in January," the producer said.

China's PTA production also remains on the high side as producers grapple with battered margins, which could further worsen as polyester activity slows down.

Given the bleak outlook for the downstream sector, capping production remains the sole viable option for now, the first trader in Singapore said.

However, due to domestic supply commitments, not all PX producers in Asia are likely to reduce production.

One producer in Southeast Asia said it would continue to run "high enough to fulfill domestic demand with no exports."

"But talking about margin, we lose somehow but we need to fulfill obligations," the producer added.

Another regional producer said it will also operate at 80%-85% for now and has no immediate plans to lower rates further.