Asian Purified Terephthalic Acid Prices Show Upward Trend Due to Tight Supply of Feedstock

The tight supply of feedstock Paraxylene caused market players in its derivative market to hike their prices. This week, the price for Purified Terephthalic Acid (PTA) trended upward, supported by the hike in Crude Oil prices and improving demand fundamentals from downstream industries. PTA prices have most likely risen as a result of the Asian market's shortage of raw materials, especially for shipments scheduled to arrive in April and May. As per the ChemAnalyst database, the price for PTA in the Asian market was USD 902/MT Ex-Qingdao (China) and 845/MT FOB Busan (South Korea) during the week ending 31st March 2023.

Due to the abrupt reduction in oil production, the price for oil-derived feedstock has been rising in the global market. Additionally, the Paraxylene unit's spring maintenance was ongoing, and the supply side had shrunk, resulting in a shortage of raw materials. At the same time, PTA producers in China and South Korea struggled with the availability of raw materials, which led to them raising prices for both exporting and importing nations. As PTA continued to destock and downstream Polyester load maintained a high level of over 83%, demand from the Polyester sectors increased. In the meantime, Polyethylene Terephthalate (PET) bottle prices also traded at high levels amid stronger demand fundamentals from the packaging sector. In comparison, PTA prices in the European market fell as a result of the bearish market for downstream PET Bottles. The increase in stockpiles served as additional support to the increased price trend.

Weilian Chemicals in Dongying and China American Petrochemical (CAPCO) in Taichung were found to have scheduled repair from 1st March through 31st March 2023.

According to the ChemAnalyst Forecast, there will be a decrease in Purified Terephthalic Acid (PTA) availability if some more Paraxylene devices undergo maintenance. Additionally, the PTA market's price tendency may increase in the coming days if demand from downstream Polyester and PET bottle industries increases. Thus, it is anticipated that the trend for PTA will temporarily stay high.