China faces PTA oversupply in 2012, export opportunities to come

04 July 2011 12:46  [Source: ICIS news]

HONG KONG (ICIS)--China faces an oversupply of purified terephthalic acid (PTA) in 2012 which will open up export opportunities, a company source said on Monday.

“By 2012, China’s PTA capacity will amount to 32m tonnes/year and the actual PTA output will achieve to 25m tonnes/year,” said Allen Yang, business manager from Italian commision agent Global Service International Changzhou Representative Office.

“But domestic PTA demand will be at 23m tonnes/year given that the downstream polyester plants with a capacity of 35m tonnes/year won’t operate at full capacity,” Yang said at the Global PX-Polyester Chain Focus 2011 conference.

“Meanwhile, China will still need over 3m tonnes/year of PTA imports as some buyers will use letter of credit to ease tight cash flow. Hence, domestic PTA will face a supply surplus and the export opportunities will open,” added Yang.

The Global PX-Polyester Chain Focus 2011 runs from 4-5 July.

For more on PTA visit ICIS chemical intelligence
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By: Judith Wang
+65 6780 4359

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