For the Quarter Ending September 2024
North America
In Q3 2024, the North American Purified Terephthalic Acid (PTA) market witnessed a significant decline in prices, reflecting a challenging pricing environment. This decrease was primarily influenced by several key factors. Weak demand from downstream industries, such as plastics and textiles, contributed to the downward pressure on prices.
Additionally, oversupply in the market due to resumed plant operations and excess material from international sources further dampened price levels. Despite the logistical disruptions caused by hurricanes and transportation, the low consumer enthusiasm offset any upward price trajectory during third quarter.
Focusing specifically on the USA, the market experienced the most significant price changes in the region. Moreover, there was a 2% decrease from the previous quarter in 2024, highlighting a continued downward trajectory. The first half of the quarter showed a price comparison with the second half at -2%, demonstrating a consistent decrease in pricing over the period. The quarter-ending price for PTA in the USA stood at USD 1390/MT, reflecting the prevalent negative sentiment.
APAC
The third quarter of 2024 has been challenging for the Purified Terephthalic Acid (PTA) market in the APAC region, characterized by decreasing prices. The monsoon season has somewhat increased the disruption, leading to low inventory levels along with the high production costs due to rise in feedstock Propylene during July 2024 which marginally increased the price trend. However, several significant factors have declined market prices during August 2024, including subdued demand from downstream industries, low consumer spending sentiment, and weak orders from the polyester sector. In addition, a drop in freight rates from high levels significantly offset any possible price hikes during this period. Prices were further pressured by the excess material in the neighbouring countries which created market competitive during September 2024. Japan, in particular, has experienced the most significant price changes during this period. The second half of the quarter saw a further decline of -3% in prices. The quarter-ending price of USD 576/MT of Purified Terephthalic Acid (PTA) FOB Tokyo in Japan reflects the overall negative trend in pricing, with a consistent decrease in sentiment and a challenging market environment.
Europe
In Q3 2024, the European Purified Terephthalic Acid (PTA) market witnessed a decrease in prices, followed by an uptrend. During July 2024, PTA prices increased despite sluggish demand from the downstream polyester industry due to its offseason. While new orders for plastic downstream products remained weak, and most downstream production barely generated profits. However, the European market for the downstream PET market has seen a surprising shift in recent weeks. While sustainability efforts have pushed for increased use of recycled PET, a change in pricing dynamics has caused a swing back towards virgin PET which certainly increased the inquiries for PTA in Europe. Furthermore, PTA's production costs have increased because of rising crude oil prices, putting upward pressure on imported prices. However, PTA prices in Germany dropped in September 2024 due to a decline in the downstream polyester demand at popular export destinations and continued to soften amid a lack of market activity during the summer season. Although Europe has faced transportation issues due to the Red Sea, the supply of PTA was unaffected due to the resumption of operations at several plants, following maintenance shutdowns, which led to an oversupply of PTA in the domestic market.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has been a period of notable mixed trend from bullishness toward bearishness for Purified Terephthalic Acid (PTA) pricing in the North American region.
During April 2024, Easter weekend in the United States this year demonstrated a sharp increase in the price of PTA, an essential raw material for plastic beverage bottles. This price increase has affected the price of bottled beverages during the height of summer. After Easter, beverage bottle production in the Americas typically ramps up significantly in anticipation of the summer heat. This annual increase in demand for PET (polyethylene terephthalate), the plastic used in beverage bottles, sets off a domino effect whereby manufacturers rush to meet the demand, driving up the price of PTA during May 2024, the essential component of PET.
However, in June 2024, a significant decrease in downstream demand from the polyester and PET resin industries despite a disruption in supply chain logistics influenced the PTA market to remain bearish. Market participants exhibited cautious sentiments, further declining demand and prices. Additionally, a reduction in raw material costs, notably crude oil, helped counterbalance increased freight charges due to global supply disruptions and adverse weather conditions affecting logistics.
APAC
The second quarter of 2024 for the PTA market in APAC has been characterized by a stable pricing environment, from bullishness toward bearishness which balanced out an overall sentiment. The equilibrium has been primarily driven by a confluence of factors, including balanced supply and demand dynamics, and consistent production rates. The region's PTA market has not witnessed significant volatility due to ample inventory levels and consistent industrial output, which have alleviated any potential supply pressures. Moreover, downstream industries such as polyester and PET resins experienced moderate demand, further contributing to the steady pricing environment. Focusing exclusively on Japan, the PTA market has shown the most significant price changes within the region. Despite the overall trends of stability, Japan experienced a 3% price increase compared to the same quarter last year, a reflection of the underlying seasonal trends and a minor uptick in demand from the downstream bottling sectors during the summer driving season. The latest price at the end of the quarter settled at USD 601/MT of PTA FOB Tokyo.
Europe
The second quarter of 2024 has demonstrated a notable uptrend in the pricing of Purified Terephthalic Acid (PTA) in Europe, driven by several pivotal factors. The overall trend reflects an increasing sentiment, influenced by seasonal demand spikes from the packaging and bottling industries. However, April 2024 witnessed a declining trend due to abundant supply and producers' reluctance to raise prices to prevent customers from moving further toward imports. This welcome change comes after the low activity was not because of a lack of downstream buying appetite, but because the producers in derivative markets were trying to satisfy consumer interest in their separate marketplaces. While, a stronger escalation was observed in the second half, including heightened freight charges due to ongoing disruptions in global supply chains, particularly in the Red Sea, and port congestion, which has resulted in extended lead times and increased shipping costs. Additionally, geopolitical tensions have impacted the logistics of PTA, further constraining supply during May 2024. Despite these logistical challenges, a resurgence in demand from the downstream polyester and PET resin sectors, typically peaking during this period, has placed upward pressure on prices. The availability of feedstocks such as paraxylene has also seen fluctuations, contributing to higher production costs and, consequently, elevated PTA prices during June 2024.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the Purified Terephthalic Acid (PTA) market in North America continued to face challenges that impacted prices. The demand for PTA remained sluggish, mainly due to the ongoing slowdown in the downstream polymer industry and a typical destocking season. Moreover, the market faced tough competition from cost-effective imports, which further contributed to the downward pressure on prices during January 2024. The manufacturing sector also experienced a decline, with falling new orders and a contraction in new export orders, adding to the challenges faced by the PTA market.
However, the rising freight charges and several impended force majeure led the US PTA market to surge during February with a significant hike. February witnessed major firms including BP Chemicals in Cooper River, South Carolina which encumbered a Force Majeure in their PTA plant having a working capacity of 89224 MT/year due to Power Outage. The major supply crunch in the domestic region of the USA and the ongoing shipping issues escalated the already tight market.
Overall, the PTA market in North America faced ongoing challenges in the first quarter of 2024, with increasing demand and economic factors contributing to higher prices.
APAC
During the first quarter of 202, the PTA market in Japan showcased a bullish trend. However, later in March, the muted trading activity across the Asian market subdued the market sentiments. Firstly, there was an uptick in regional trade, leading to increased transactions and a boost in demand for Japanese PTA. Furthermore, the plastics sector, a significant consumer of PTA, witnessed a gradual increase in demand both domestically and in export-oriented markets. This heightened demand contributed to a more optimistic market sentiment and positively impacted prices. This was supported by a rise in domestic inquiries and a reduction in excess supply, resulting in stabilized prices. Later, the shipping-related issues that had previously disrupted the market also showed signs of improvement. The spot flow became more fluid, providing buyers with more options and a smoother trading process. Overall, the PTA market in the APAC region showcased a strong recovery in the first quarter of 2024. Increased trade reduced excess supply, improved shipping conditions, and growing demand from the plastics sector all contributed to a more positive market outlook. Japan successfully managed the surplus supply and experienced price growth.
Europe
During the first quarter of 2024, the Purified Terephthalic Acid (PTA) market in Europe experienced a mixed situation. Supply was moderate to high, while demand was moderate during January 2024. The market remained bearish due to uninterrupted production and the availability of feedstock, with no reported plant shutdowns. However, the market faced instability caused by high freight charges due to ongoing disruptions in the global supply chain industry during February 2024. The existence of supply disruptions brought on by the Red Sea crisis was one influential to an uptrend. The protracted crisis has caused import shipments from Asia and the Middle East to arrive later than planned, which has a direct effect on the supply of PTA in the European market. As a result of the supply chain's resulting scarcity and the increased uncertainty around the dynamics of global commerce, PTA prices in the area saw upward pressure. Moreover, not only the supply crunch, but the feedstock Propylene has also further supported the uptrend. The manufacturing costs for PTA have significantly surged during this timeframe with the increase in feedstock propylene prices. Nonetheless, the country's demand for the product continued to remain on a higher side.
For the Quarter Ending December 2023
North America
The Purified Terephthalic Acid (PTA) market in North America during the fourth quarter of 2023 experienced mixed sentiments driven by a bullish trend followed by a downtrend during December.
Firstly, there was a shortage of PTA supply in the region, leading to higher prices. This was influenced by limited inventory levels and reduced production rates at some manufacturers. Additionally, the demand from downstream industries, such as packaging and polyester, remained moderate to high throughout the quarter. The robust demand from these industries contributed to the overall positive market sentiment. In terms of specific country analysis, the United States (USA) had the most significant changes in PTA prices. The PTA prices in the US market saw a surge amidst a shortage of inventories and an increase in downstream plastic and polyester industry demand. The volatility in regional orders and challenges in fulfilling current orders further constrained supplies, leading to price increases.
However, December witnessed a downtrend as the dwindling demand for PTA stocks and the year-end pressure to reduce inventories plunged the market sentiments. The price of PTA in the USA was USD 1370/MT at the end of the quarter.
APAC
In the APAC region during the current quarter of 2023, the Purified Terephthalic Acid (PTA) market experienced a bearish trend throughout the quarter. Firstly, the market situation was bearish with a moderate to high supply, leading to a surplus of supplies in Japan. This surplus was attributed to market participants accumulating inventories and adopting a destocking strategy towards the year-end. Furthermore, the PTA demand in Japan was low due to weak consumption in the downstream plastic and polyester industry. This lack of consumption resulted in a pause in procurement sentiments amongst buyers and further contributed to the bearish market situation. In terms of pricing trends, the current quarter saw a percentage change of -7% in comparison to the same quarter of the previous year. Additionally, there was a percentage change of -9% from the current quarter to the previous quarter of 2023. Overall, the market conditions in the APAC region for PTA in the current quarter were impacted by a bearish market situation, low demand in Japan, and a surplus of supplies. These factors resulted in a downward trend in prices. As of the quarter ending, the latest price of PTA FOB Tokyo in Japan was USD 588/MT.
Europe
The Purified Terephthalic Acid (PTA) market in Europe during the current quarter (Q4) of 2023 saw mixed market situations, with a bullish trend during October and November followed by a bearish trend during December. This positive momentum was further reinforced by a posted price increment of PTA in October, prompting European market players to follow suit. In the initial phase, certain manufacturers faced a slightly tight supply of goods due to factors that hindered the commencement of production. The price of PTA was high in Turkey as the manufacturers opted for the strategy of reducing operational rates to safeguard the profit margins of producers and traders to enable suppliers to bolster their margins. The market was influenced by limited supply due to reduced production rates and an escalation in input costs, which increased cost pressure on market participants. However, the destocking sentiments among market players reversed the price momentum during December 2023 to settle at USD 1070/MT, PTA CFR Izmir (Turkey), December 2023.
For the Quarter Ending September 2023
North America
The Purified Terephthalic Acid (PTA) market in the United States saw a significant price increase throughout the third quarter of 2023 driven by a surge in demand from downstream industries. This increased demand was the primary catalyst behind the price hike. Moreover, the PTA market benefited from rising costs in the upstream Crude Oil market, which provided support and partly offset the challenges posed by increased downstream demand. In August 2023, the Manufacturing Purchasing Managers' Index (PMI) showed a slight improvement from the previous month. Production levels stabilized somewhat, but the decline in new orders continued at a faster pace. Factory input prices remained relatively subdued, although there were signs of a potential reversal. The PMI has consistently remained below the threshold, indicating a prolonged period of contraction in the manufacturing sector. However, procurement from downstream Polyester industries remained healthy throughout the month. Additionally, the consumer price index increased by 0.4% in September, compared to the previous month, and by 3.7% from a year ago, leading to price increases across a wide range of goods and services.
APAC
In the South Korean market, Purified Terephthalic Acid (PTA) prices rose throughout the third quarter of 2023. The price increase was influenced by reasonable cost pressure from the feedstock naphtha, which was on an upward trend during that period, prompting producers to raise their prices. However, inquiries from downstream PET bottle and polyester industries remained stable to weak due to economic uncertainties. Market transactions were primarily driven by immediate needs, as the terminal companies showed limited enthusiasm to enter the market. As the third quarter of the year ended, South Korea's manufacturing sector maintained a predominantly stable condition. The PTA industries operated without any supply interruptions. Nevertheless, businesses took advantage of the opportunity to hire for vacant positions in anticipation of an impending uptick in demand. Consequently, this resulted in the highest rate of job creation recorded in September 2023. As a result, the Purified Terephthalic Acid (PTA) market experienced a price surge amid an overall improvement in market sentiment.
Europe
The Purified Terephthalic Acid (PTA) sector in Eurozone remained stable in the first half of the third quarter, driven by increased purchasing activities from downstream industries, especially the packaging sector. Manufacturers noted moderate demand for PTA, and the market also benefited from rising prices in the upstream sector, driven by increased Naphtha prices during the same period. Supply of materials in the market was satisfactory. However, in the second half of the quarter, the market for PTA rebounded, as Germany faced challenges from heatwaves and heavy rainfall, causing fluctuations in the water level of the river Rhine during the considered period. Imports from other Asian and European markets were significantly impacted due to high freight charges on partially empty shipments, but this situation improved as heavy rain restored the water level to normal in early August. The shipping industry improved during the period, despite rising costs, climatic disruptions, and occasional product delays and shortages adding pressure to shipping activities. Additionally, in August, the Consumer Price Index (CPI) in Germany increased to 117.50 points, up from 117.10 points in July 2023, according to the Federal Statistical Office.
For the Quarter Ending June 2023
North America
In the beginning of the second Quarter prices of Purified Terephthalic Acid (PTA) saw an increment due to limited supply of raw material paraxylene which consequently led to depletion of inventories, thereby limiting the supplies. Significant demand from the downstream packaging industries which had just recovered kept the market situation bullish, as the size of inventories diminished. Towards the middle of the second Quarter, prices of PTA saw a further rise in prices as producers lacked inventories and saw a rise in export orders from Argentina and Saudi Arabia. Supply remained at normal levels despite optimum production despite labor disruptions on the ports of West Coast which had a significant impact on supply chains, while demand remained low due to diminished profit margins in polyester and packaging industries and a decline in domestic sales. Manufacturing activity also fell in the region due to the sluggish purchasing activity amid high interest rate and inflation, the data by FRED also indicated that the Production price Index in the US market dropped to 245.83 in June 2023. Finally, the final price of PTA was assessed to be USD 1110/MT FOB Charleston.
APAC
Prices of Purified Terephthalic Acid (PTA) showed an increment of in beginning of the second quarter as demand from PET bottle factories revived. However, towards the middle of second quarter the situation of the market turned bearish due to declination in the cost of raw material paraxylene and expansion of material in the Asian market. The bearish situation of PTA continued till the end of second Quarter of 2023 as traders experienced an oversupplied market due to decline in the prices of feedstock Crude Oil because of which production rates decreased in the region. The shutdown of Hanwha Impact Corporation in Daesan for expansion purposes did not have significant change in supply. In addition, South Korea's consumer price index rose 2.7% year-on-year in June 2023, easing for the fifth consecutive month to the lowest since September 2021, supporting the central bank's move to pause its tightening cycle earlier this year. Despite factory shutdowns, inventories in the domestic market have remained ample. Overall, the Asian market for PTA in the quarter witnessed a mixed situation, but a dominating bearish trend. Towards the termination of the quarter, the price of PTA was assessed to be USD 805/MT FOB Busan.
Europe
During the start of the second Quarter prices of Purified Terephthalic Acid (PTA) showed a bullish trend, in the European market as costs of raw materials paraxylene and crude oil increased. Production was maintained at high levels despite raw materials being expensive. Demand remained moderate to high levels due to the optimistic outlook of packaging sector and anticipation of improvement from polyester and bottling sectors for the incoming of peak summer season. However, towards the middle of second quarter prices saw a declination due to worries of the US Banking sector, pressure on oil prices and hikes in the interest rates by the Fed. Moreover, the insufficient demand from the PET sector was unable to sustain the upward trend due to the depressing outlook of offtakes from the international market. Supply remained normal as productions units continued to operate at optimum levels, however, demand was recorded to be low in contrast to the anticipated high demand from the beverage bottling industry for the peak summer season. In the meantime, European monthly producer prices fell in May by 0.9%, highlighting the challenges faced by the economy in reviving demand and regaining economic growth. Finally, the price for PTA was assessed to be USD 860/MT FD Hamburg.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, the price of Purified Terephthalic Acid (PTA) showed an upward trend, with prices reaching USD 1015/MT FOB Charleston in February. The price increase in January could be attributed to a series of production disruptions, while the March increment was influenced by rising crude oil prices and a labor shortage in the US market that disrupted supply and production. However, despite the price increases, new orders continued to decline, with new export sales decreasing for consecutive months, likely due to higher interest rates and inflationary pressures affecting demand. Overall, the first quarter of 2023 saw PTA prices trending upward, with various factors impacting supply and demand dynamics in the market.
APAC
Purified Terephthalic Acid (PTA) processing margin was volatile in Q1, with prices experiencing both decreases and increases throughout the quarter. The mid-quarter decline in prices was attributed to various factors, such as production shutdowns, changes in supply and demand dynamics, and bearish market sentiment. The shutdown of units like Yizheng, with a production capacity of 650/MT, for one week in end-Feb affected the supply side of the market and put pressure on prices. However, the increment in PTA prices for most of the quarter was largely dependent on the demand outlook and volatile feedstock market, as downstream industries experienced rising demand. Overall, the PTA market in Q1 seemed to have been influenced by a combination of supply and demand factors, along with fluctuating feedstock prices.
Europe
The price of Purified Terephthalic Acid (PTA) was influenced by various factors, including declining demand, changes in pricing for crucial raw materials such as Paraxylene, and fluctuations in the Crude oil market. In addition, the high inflation rate in the eurozone had an impact on the PTA market. Despite steady production rates, supply was disrupted towards the end of the quarter due to worker protests in Europe over low wages and poor working conditions. However, the industry's capabilities were sufficient to meet current demands. Even though the amount of labor at PTA factories decreased and downstream polyester demand remained moderate, PTA was still being destocked. In Europe, PKN Orlen in Wloclawek (Poland) was shut down for maintenance from 1st March to 31st March 2023.
For the Quarter Ending December 2022
North America
The Purified Terephthalic Acid (PTA) market price in North America continued to fall throughout the fourth quarter of 2022. The price drop was mostly due to a decrease in downstream packaging industry demand for PET bottles in Q4. Despite workforce scarcity in the US, production costs increased, but a lackluster domestic market kept prices down. Meanwhile, slowing demand brought attention to the large inventory build-up, keeping export and domestic pricing under pressure. Regional export and domestic prices were following weak price trends as a result of a lack of buying activity. An array of factors, including excess inventory, increasing inflation, and skeptical client attitudes, were exerting pressure on certain retailers' profitability. Conclusively the price for PTA in the US market declined and settled at USD 1025/MT FOB Charleston during October 2022.
APAC
The Purified Terephthalic Acid (PTA) market witnessed moderate demand from downstream industries, and the price was declining. Throughout the fourth quarter of 2022, the PTA market has been under downward pressure since November as additional polyester facilities were scheduled to curtail output, and new Paraxylene and PTA capacities were scheduled to start operations. In the meantime, a pessimistic outlook caused the PTA margin to decline, and prospective output decreases by PTA manufacturers were noticed in the Korean market. As a result, during November, the price of PTA was found to be circling USD 823/MT FOB Busan. Additionally, as large feedstock paraxylene plants started to emerge in China, PTA makers were apprehensive about how many terms of cargo to contract in China towards the end of 2022 amid sluggish downstream demand.
Europe
In the fourth quarter of 2022, Purified Terephthalic Acid (PTA) producers reported stable to weaker demand, and prices were reduced by around 5% in the quarter's second half. While some of them agreed that demand was steady, others complained about a significant decrease in demand. A distributor said that their demand was lower than usual in December, so they did not lower prices any further because it would not help sales. In conclusion, in November, the price of PTA in Germany hovered around USD 906/MT FD Hamburg. Converters were plagued by worries about a possible recession and the decline of the economy. While product availability was sufficient to satisfy consumers' overall demand, European producers had reduced production in response to the weak demand.
For the Quarter Ending September 2022
North America
The market sentiment for PTA has been sluggish in the first half of Q3. The factors that ruled over the market were low demand, high inventories, fear of recession, and dull consumer confidence. The sharp drop in PTA prices was mainly driven by weak demand for PET from the packaging sectors. Meanwhile, the packaging and Polyester sectors were oversupplied in the market, limiting consumer interest in procuring fresh material. In addition, the Paraxylene-Naphtha Spread has reduced even more as crude oil prices kept falling compared to the past few months, given the persistently bearish demand. However, the market has been flourishing towards September as rising production costs weigh on the ongoing market trend. Conclusively, the price for PTA dipped by 1.8% on a Charleston FOB basis during August 2022.
APAC
The price trend of Purified Terephthalic Acid (PTA) continued to decline throughout the first half of Q3. The sluggish demand sentiments from end-user polyethylene terephthalate and polyester sectors in the domestic market compelled companies to reduce their profit margins to increase the trade of goods. Also, Purchasing Managers Index (PMI) data showed Chinese manufacturing activity, which shrank for a consecutive month till August, as Beijing kept introducing new curbs in response to fresh COVID outbreaks. Towards the end of Q3, the PTA market observed growth, mainly due to the high production rate as the influence of typhoon "Xuan Lannuo," suspending the shipping and delivery of PT.
Europe
Due to the easing price pressure on the feedstock Paraxylene, PTA prices in Europe fell throughout Q3. The outlook for the product's demand appeared to be deteriorating; feedstock paraxylene and crude oil prices also contributed to the declining trend as they were falling simultaneously. Additionally, the PTA market gradually oversupplied downstream demand from polyester and PET manufacturers reduced. At the same time, production dropped 1.0% as a result of the rising energy and electricity costs in Europe. Heavy port traffic caused imports and exports in Germany to fall by 0.2% and 0.7% towards the end of the quarter.
For the Quarter Ending June 2022
North America
In North America, Purified Terephthalic Acid (PTA) prices were observed inclining for April and June, but they dipped in May. This attribution came on the back of fluctuating crude oil prices, which remained volatile during the second quarter. Further, soaring cost pressure from its raw material market like Paraxylene also contributed to the rising price trend in the first and second half of Q2. Demand for the product during the period remained stable in the regional market. It caught its pace in demand during June when there were high orders for Polyethylene Terephthalate (PET) bottles in the packaging sectors. Thus, to conclude this, ChemAnalyst prices settled at USD 1033/MT FOB Charleston during June.
APAC
In China, Purified Terephthalic Acid prices were observed at Lowered in the first half of the second quarter, which gained momentum during the second half of Q2. Petrochemical markets were mainly ruled by the volatile crude oil prices hovering the price for PTA around USD 1003/MT Ex-Qingdao during June. Since the resurgence of Covid-19 in the Chinese market, the Purified Terephthalic Acid (PTA) plant operating rate reduced alongside decreasing demand from downstream Polyethylene Terephthalate (PET) bottle and polyester industries. At the same time, the Indian market flourished throughout Q2, backed by the consistent demand for PET bottles from the packaging sector. Feedstock paraxylene remained strong in the domestic market with firm crude oil prices. Further, India’s dependency on the import market from South Korea and China has created limited availability of the product in the regional market due to supply disruption and high transportation costs, which has eventually culminated in the hike in the price. Therefore, considering these factors, the price rose in the Indian market and hovered around USD 1250/MT Ex-Silvassa in June 2022.
Europe
In Europe, Purified Terephthalic Acid (PTA) prices increased during the H1 of Q2, which later dipped in the second half by approx. 3% in the European market. Demand from downstream Polyethylene Terephthalate (PET) bottle and polyester industries boosted on the verge of approaching summer season in Europe. Further, hit the crunched supply situation in European countries amidst the Russia-Ukraine market, keeping the prices at the high end. In addition, due to the global crisis, the crude oil market was hit harder with its value skyrocketing, ultimately affecting the pricing of all petrochemical derivative products. Thus, considering the reasons mentioned above, the price for PTA fluctuated during the second quarter and settled at USD 1012/MT FD Hamburg in June 2022.
For the Quarter Ending March 2022
North America
In North America, the price for Purified Terephthalic Acid witnessed a seesaw trend where prices declined in January, rebounded in February, and again dipped in March. The feedstock prices too fluctuated with the volatile crude oil price. The downstream PET and polyester industries saw growth in demand from consumers and businesses as industrial activities picked up the pace. Further, revenue and sales of the major producers have also increased with the increase in their consumption from the consumer’s end. Therefore, strengthening supply dynamics and stable demand fundamentals have pressured market participants to weaken the prices of the available material in the later stage of Q1. After the conclusion of Q1, the price for PTA settled at USD 986 per MT FOB Charleston.
Asia Pacific
In India, after having a lacklustre Q4 2021, PTA prices in India have observed a change in momentum in Q1 2022. PTA prices steadily increased and the price change was attributed to the increased demand from downstream users and increased cost pressure from upstream xylene. Demand from downstream Polyester and Polyethylene Terephthalate remained strong throughout Q1 of 2022. Consequently, PTA prices after the conclusion of Q1 were assessed at USD 1084.91 (INR 82290) per MT Ex-Kandla. The Purified Terephthalic Acid market saw an upward trajectory in the Chinese domestic market on the back of high demand from downstream PET and textile industries and rising feedstock prices. In addition, Zhejiang Yisheng Petrochemical announced the permanent closure of its oldest 650 KTPA Purified Terephthalic Acid (PTA) No.1 line at its Ningbo site located in East China’s Zhenjiang province. Further in the later stages of Q1, against China’s zero-tolerance policy, port Yantian, a major exporting port to Europe, has been closed, hampering the supply chain dynamics. Thus, the price for PTA rose and settled at USD 962 per MT Ex-Qingdao in the first quarter of 2022.
Europe
The Russia-Ukraine war in H2 of Q1 caused havoc in crude oil prices globally, affecting crude oil derivatives price trend. During Q1, the prices of PTA in the European market declined in February, which later gained momentum in March. The wind of change was caused by improved demand from end-users and increased cost pressure from upstream Paraxylene. Afterward, the imports of crude oil and natural gas from Russia to Europe were hampered due to the logistics issues. Demand from downstream Polyester and PET remained firm throughout the quarter, where PET prices broke charts in Q1 amid spiking demand and limited product availability. Thus, amidst the volatile market, the price for PTA in Europe settled at USD 824 per MT FD Hamburg.
For the Quarter Ending December 2021
North America
In quarter IV, PTA imports remained sluggish from South America and Asia. Mexico struggled with domestic production which curtailed exports to USA while resolutely high freight charges and shipping costs restricted the Asian exports to reach US shores. Meanwhile, downstream PET resins maintained strong volume intakes as consumption from packaging industry remained strong. PTA prices were assessed in strong ranges due to robust demand and lopsided supply dynamics. PTA price increased to USD 1170 per MT on FD basis in December.
APAC
Logistical issues plagued Indian PTA market in October which posed a major challenge for traders and in turn kept an upward pressure on domestic PTA prices. Other than just shipping woes, additional factor i.e., disturbance in production activities in Chinese market become an additional factor behind this steep rise in price of PTA across APAC region. Therefore, PTA prices rose significantly in October and assessed around INR 75640/MT CFR JNPT. Despite of the fact that demand for PTA reduced from downstream polymer segment in H2 of Q4, other sectors like textile, maintained stability for PTA demand across regional market. However, PTA prices in India tumbled in December influenced by low offtakes from downstream polyester segment.
Europe
PTA production remained underwhelming throughout which further limited the operating rates of downstream PET resin. Demand from PET remained strong throughout where market participants remarked that market have witnessing some outrageous consumption numbers from the end users. Increased usage of PET bottles across the continent in beverages and other applications pressured the demand for PET resin. Imports of PTA from were hampered due to resolutely freight charges and prolong turnaround time. Consequently, prices of PTA in Europe were assessed at an incessant rise in Q4 and were measured at USD 890 per MT in December on FOB basis.
For the Quarter Ending September 2021
North America
PTA values remained firm in the North American region during Q3 of 2021. Factors such as raw material supply crunch and buoyant demand from the packaging industry after the recovery in the economic sector pushed up the pricing curve of PTA. Disruptions in the production and supply chains due to Hurricane Ida which made landfall in the U.S. Gulf Coast in August end further added to the supply tightness in the region. Moreover, logistic issues, especially the truck availability led to the delays in the deliveries of the product in the region that further contributed the pricing trend of PTA. Prices of PTA were assessed in ranges of USD 1110-1150 per MT FOB Texas during the quarter.
Asia Pacific
In Asia, PTA prices showcased an upward trajectory in the third quarter of 2021 backed by the firm offtakes from the regional downstream manufacturers and spike in the upstream prices. In India, PTA market outlook appeared bullish due to the robust demand from the PBT and PET industries amidst the tight supply fundamentals. In addition, delayed supplies followed by the congestion on several ports in China along with the expensive imports from the other countries due to the exorbitant freight charges and unavailability of shipping containers contributed to the inflation in the prices of PTA in the region. Thus, prices of PTA rose to USD 467.38 per MT from USD 360.44 per MT during July to September timeframe.
Europe
In Europe, PTA market witnessed firmness during the third quarter of 2021. Prices of Purified Terephthalic Acid (PTA) traced the values of the feedstock prices that remained high throughout the quarter. Various factors including delayed imports due to disruption in the supply chain and lower production in this period followed by the natural gas crisis in Europe. Moreover, soaring freight charges also fumed the values of PTA in this quarter.
For the Quarter Ending June 2021
North America
PTA supplies in the North American region, improved comparatively over previous quarter as the industrial infrastructure restored in the US Gulf coast, and major manufacturing sites were operating at optimum efficiencies. Despite that, the regional supplies remained tight during the second quarter of 2021 due to affected imports. The Mexican PTA trade slumped during the second quarter owing to the strengthened replenishment of inventories ahead of the upcoming hurricane season in the North America. Demand was bolstered from the downstream polyester industries as the offtakes witnessed a seasonal peak with the rise in textile manufacturing. As a ripple effect, PTA pricing took an uptrend with FOB Texas discussions settling at USD 1250 per tonne, showing an increment of 17.92% in the month of June itself.
Asia Pacific
PTA supply outlook in the Asia Pacific region observed a mixed trend during the second quarter of 2021, owing to the series of planned turnarounds in China and NE Asia which tightened the overall product supply after following the uptrend in the first half of the quarter. A leading Chinese PTA manufacturer Yinsheng Petrochemical commissioned its two new PTA units in May. Also, due to the better production margins in its new PTA lines, Yinsheng Petrochemicals announced the permanent closure of its oldest 650 KTPA (PTA. No 1 Line) in Zhenjiang province. Noting the series of capacity additions, it is anticipated that China will further expand its PTA capacity by additional 3.3 million MT in H2 2021. Against the backdrop of already lengthening supplies, markets participants were closely tracing the movement in the Indian demand patterns as the second wave of pandemic dented the demand by the biggest Asian PTA importer. The pricing trend in China showed marginal falls with FOB Qingdao prices assessing at USD 859 per tonne in June.
Europe
The supplies conditions in the European PTA market improved over the last quarter as an upstream Paraxylene unit ended its turnaround period in the mid of the second quarter. However, limited product availability in the US market affected the export volumes to the European region. Some South Korean PTA exporters were heard sending volumes to the European and Turkish markets, to leverage the Free Trade Agreements with these countries. Freight charges in the Atlantic region dropped, as a ripple effect, arbitrage window between the Europe and North America strengthened. Resumption in the market activities supported the public movement in several parts in Europe that further prompted surge in PTA demand from the polyester sector.
For the Quarter Ending March 2021
North America
The Purified Terephthalic Acid (PTA) market in the North American region remained tight during the first quarter of 2021, due to production disruptions amid the unprecedented arctic freeze in the US gulf region. The abrupt weather conditions caused unavailability of key feedstock for several weeks due to plant shutdowns. The demand from the downstream PET sector surged, following strong competition among the buyers to replenish their inventories ahead of the expected rise in demand in the upcoming years. PTA prices witnessed an uptrend taking cues from the surge in prices of upstream Benzene and Paraxylene.
Asia-Pacific (APAC)
Supplies in the Asia Pacific region strengthened due to the addition of new PTA facilities in China during Q1 2021. Total 7.9 MT per year of PTA capacity was commenced from Fujian Baihong plant in Quanzhou, Shenghong petrochemical at Lianyuangang, and Yisheng petrochemicals at Ningbo. However, some constrains were witnessed in the region due to several plant turnarounds amid Chinese lunar new year holidays. Demand was deemed healthy in the first quarter, as the exports to the western region and import demand from the southeast Asian region improved. Prices of PTA in FOB Shanghai followed an upward trajectory throughout the quarter averaging at USD 908 per MT for April deliveries.
Europe
Supplies in the European region remained tight during the Q1 2021, owing to the hampered transportation in the northwest European region that led to the shortage of key feedstocks. PKN Orlen facility in the Poland witnessed significant decline in PTA production, followed by the unplanned outage in the INEOS PTA facility in Belgium. Further imports to the region declined amid the Suez Canal blockage and high shipping cost during the quarter end. However, due to the supply chain disruption, demand from the downstream PET sector surged during the Q1 2021.
For the Quarter Ending September 2020
North America
The North American PTA market has gained considerably amidst the increased demand for packaging materials due to rising coronavirus contagion and is anticipated to receive further boost from the sudden shortage of aluminum cans in the region. Increased demand on positive shift in consumer sentiments towards single-use plastics has provided the US PTA industry with appreciable gains. And as long as the shortage of aluminum can persists, the regional PTA market is unlikely to face severe challenges from demand side. However, the prolonged slowdown in Polyester industry has marginally dragged the present growth of the PTA market from the packaging sector.
Asia
Supply overhang of PTA (Purified Terephthalic Acid) in the Asia Pacific region eased in the near term as several manufacturers in China and India imposed a temporary turnaround amidst wavering concerns over coronavirus spread and dwindling polyester demand. However, the impeding start-up of new PTA capacities in China by the next quarter has stressed manufacturers and traders over surplus production in times of hovering downstream demand. As per the industry experts, the market outlook of PTA industry is likely to remain under downward pressure in the next quarter as well, with supply outstripping the demand.
Europe
As the region has geared steady pace to resume activities after considerable upliftment in lockdown restrictions, the demand for PTA from the polyester as well as plastic industry has witnessed a much-needed recovery after witnessing a prolonged dullness in the previous quarter. However, improved market fundamentals are likely to shroud in the coming months with increment in PTA cargoes from Asian region following the slated capacity additions from the production hub, China. Furthermore, concerns over resurgence of coronavirus in several parts of Europe has also raised serious concerns over demand outlook of PTA in the near term.
