Europe
The purified terephthalic acid (PTA) market remains unstable, amid uncertainty surrounding demand and poor economics in the downstream polyethylene terephthalate (PET) sector, as well as volatility in upstream prices. PTA producer margins have been poor.
The lead-up to spring normally heralds the start of the PET bottling season, but continued cold weather and cash-poor end-users resulted in low sales volumes and PET producers reducing their output. By May, there were signs of increased interest, however.
PTA contract prices moved in line with upstream paraxylene (PX) monthly contracts.
Average PTA contract prices fell from €989/tonne FD (free delivered) NWE (Northwest Europe) in February to €895/tonne in April. May is expected to remain unchanged in view of PX price developments.
As of 1 May 2013, the 5% import duty levied on PTA into Russia, Belarus and Kazakhstan will be suspended, until 30 April 2014.
Updated to mid-May 2013
US
The US purified terephthalic acid (PTA) February contract price was assessed at 66.19 cents/lb DEL (delivered), up by 4.69 cents/lb from January. The PTA price is formula-linked to changes in the upstream US paraxylene (PX) monthly contract, representing 67% of the delta for the month.
The March PTA contract moved up to 68.20 cents/lb, following a hike in the PX March Contract.
In April, the PTA contract fell by 2.34 cents/lb to 65.86 cents/lb from March, following a weaker PX April contract.
Sources said demand was lower than expected as a result of a slow increase in demand from the downstream polyethylene terephthalate (PET) market.
Prices for May are expected to move down based on expectations of a lower PX contract for May and falling raw material costs, sources said.
Updated to mid-May 2012