The events that are unfolding in Japan indicate a significant impact to the global polyester value chain. Production of paraxylene fo the global polyester value chain in Japan has been directly affected by the earthquake and ensuing tsunami and is down at this time. The Asian spot market for paraxylene has shifted up dramatically in response to these events.
Until a full assessment of the damage at the refinery level, the infrastructure level and the impact of the nuclear situation is understood, the reliability of paraxylene production from Japan is very uncertain.
Anticipating significantly higher priced paraxylene in April, DAK Americas will increase prices for all Polyester Staple Fiber (PSF) products by seven cents, effective April 1.