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
US purified terephthalic acid (PTA) contract prices fell during the quarter on the back of weaker upstream paraxylene (PX) contract prices.
Prior to that, the February contract price was up by 2 cents/lb. March and April were both declines, though, on a formula-based correlation to PX. March PTA was down almost 3 cents/lb and April PTA was down nearly 5 cents/lb.
May PTA is being held up by a delay in the PX contract settlement. US players are waiting to see what the PX Asian Contract Price (ACP) will do. The PX ACP has not yet been settled for May.
Updated to mid-May 2013