USA and China Isophthalic Acid Market Navigates with Crude Oil Price Volatility amid Weak Demand

The prices of Isophthalic Acid remained stable in the week ending 1^st November in both China and the USA, supported by steady demand from downstream industries, especially the polyester sector. At the same time, a limited supply of raw materials in certain regions has contributed to this price stability, although market conditions showed signs of underlying complexities.

In China, Isophthalic Acid prices settled at USD 1169 per metric ton (MT) FOB Qingdao, maintaining a steady trajectory. The stability in Isophthalic Acid prices can be attributed to consistent demand from polyester and other downstream sectors. However, recent fluctuations in crude oil prices have created some uncertainty in the broader petrochemical market. Although oil prices fell sharply following geopolitical tensions in the Middle East, including Israel’s military strike on Iran, fears of significant disruptions to oil and nuclear facilities were short-lived. As a result, Brent crude futures dropped 6.09%, settling at USD 71.42 per barrel, while WTI crude futures fell by 6.13%, closing at USD 67.38 per barrel.

Despite the drop in oil prices, which could have exerted downward pressure on production costs, the Isophthalic Acid market in China remained resilient. Limited raw material availability and consistent demand from polyester producers helped to stabilize Isophthalic Acid prices.

As for the USA, the trend observed for Isophthalic Acid prices was somewhat similar. The stability in Isophthalic Acid prices in the US can be attributed to a confluence of factors. A well-balanced supply-demand equation has prevented significant price fluctuations. Consistent production levels and moderate demand from downstream sectors have contributed to this equilibrium. Considering downstream, Prices for polyethylene terephthalate (PET) in the North American market remained steady, owing to consistent production costs and balanced supply-demand dynamics. Furthermore, downstream sectors, such as PET bottles and packaging, continued to need PET resin in moderate quantities. This steady demand encouraged manufacturers to stay optimistic about their business. As a result, the prices of Isophthalic Acid CFR Texas were resolved at USD 1290/MT in the week ending 1st November.

Looking ahead, the Isophthalic Acid market in both China and the USA is expected to exhibit minor fluctuations, with price trends remaining closely tied to raw material availability and the performance of downstream sectors. The PET market, although facing subdued demand, is expected to continue trading within a narrow range, which could exert a limited influence on Isophthalic Acid prices.

In short, while Isophthalic Acid prices in both China and the USA remained stable in the short term, the market will continue to be influenced by a complex interplay of factors, including oil prices, raw material availability, and downstream demand trends.