The event: A ceasefire discount priced out overnight
The polyester feedstock chain lost its ceasefire discount on July * after two commercial tankers were reportedly struck in the Strait of Hormuz. The vessels, the Qatari LNG carrier Al Rekayyat and the Saudi supertanker Wedyan were hit, while a third vessel was reportedly damaged by a drone on the same day. Brent crude settled * per cent higher at $**.** per barrel, while WTI rose *.* per cent to $**.**, in line with TexPro market assessments. Within hours, the renewed geopolitical risk premium spread across the polyester value chain, lifting paraxylene (PX), purified terephthalic acid (PTA) and monoethylene glycol (MEG).
The cost transmission: PX leads, PTA follows, MEG lags
TexPro data reveals a clear cost transmission across the polyester feedstock chain between July * and July *:
