China ships first 1,000 tonnes local PTA to India

27 July 2012 09:39  [Source: ICIS news]

SINGAPORE (ICIS)--A major Chinese purified terephthalic acid (PTA) producer has sold a 1,000-tonne cargo to an Indian polyester maker this week, marking China’s first overseas shipment of domestically produced raw material for textile, market sources said on Friday.

The cargo loading was sold on a free-on-broad (FOB) basis based on the monthly spot average of CFR China prices – roughly in the low-$990/tonne CFR China levels, said a source from the Zhejiang-based PTA producer.

China’s PTA reaching India has been a long time coming, industry sources said.

India has been facing an acute shortage of PTA since early July because of plant shutdowns, opening a window for imported PTA from China.

Other countries that supply PTA to India have limited supply availability given ongoing production cutbacks, a major regional trader said.

With aggressive capacity expansion scheduled between 2012 and 2014, China – the biggest importer of PTA in Asia – reduces its reliance on imports and is able to ship out volumes to other countries.

In June, China imported a total of 456,600 tonnes of PTA (including qualified terephthalic acid (QTA), down 22% year on year, according to China Customs data.

By: Becky Zhang
+65 6780 4359

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