Value Chains: Purified terephthalic acid (PTA)

Source: ECN

2018/08/10

PURIFIED TEREPHTHALIC ACID (PTA)

  • PTA is primarily used in polyester fibre and PET resin for packaging, bottle and film applications.

  • Europe prices based on raw material plus conversion fee lagged behind spot in H1 2018.

  • Exceptional tightness in Europe through H1 2018. Suppliers may seek to increase margins in 2019 contracts.

  • Globally tight market should lengthen in H2 2018, as new capacities start up in Asia, PTA plant in Portugal reopened in July.

  • US contract and spot prices driven up by tight supply, higher upstream costs and firm crude.

  • US supply tightened amid BP acetic acid force majeure.

  • US downstream demand to increase with FENC PET resin plant restart.

  • Asia tight market to ease, with majority of units back in operations.

  • China polyester demand growth estimated at 6-7% for 2018.

  • Non-China PTA margins positive, keeping run rates at high levels.

  • Weakening rupee, credit tightening in India limits demand growth.

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