The German PTA market has been experiencing a significant downward trend during September 2024, following a price rise in August 2024 amid an upsurge in transportation issues due to port strikes. However, the price decline was attributed to a weakening demand from the downstream industries impacting both supply and demand.

A major contributor to the low PTA prices was the sluggish demand from downstream polyester producers, particularly in popular export destinations. This slowdown was likely due to the typical season lull in market activity. Not only the polyester market, but the market has faced muted demand from the downstream textile sector in Germany. This lack of buying enthusiasm further puts downward pressure on prices to settle at USD 862/MT, PTA FD Hamburg, Germany with a monthly decline of 6.7% on 27th September 2024. While Europe is still grappling with transportation issues stemming from the Red Sea blockage, PTA supply in Germany has been unaffected due to an oversupply in the domestic market. Several PTA plants resumed operations following maintenance shutdowns, leading to an oversupply situation in the domestic market. This surplus puts downward pressure on prices as producers compete to sell their stock. Data suggests that the PTA industry continues to operate at a high capacity of 85%, further contributing to the abundance in the market. Moreover, a significant decline in the feedstock Propylene and upstream Crude oil prices further eased the production costs during this timeframe.

Furthermore, neighboring countries with excess PTA are also competing in the German market, adding to the downward pressure on prices. The low PTA prices were having a ripple effect on downstream industries. Textile and plastic manufacturers who purchase the products were revising their offers downwards due to the low-cost PTA they have procured. This creates a negative feedback loop, further dampening demand. While the European PTA market itself remains largely unaffected by Red Sea issues, delays persist for shipments arriving from the USA. Congestion at transshipment ports continues to disrupt delivery schedules. However, despite the persistent issues, the decline in global freight charges offset any upward pressure.

As per ChemAnalyst, the PTA prices in Germany are expected to surge in October 2024 amid foreseen rebound in the global market. Even though the market calmed down before the National Holiday, several macro-factors could lead to a sharp increase amid possible volatility of upstream crude prices could surge the production costs. Moreover, several manufacturers could revise the offers positively to regain the profit margins.