ICIS has enhanced its Asia purified terephthalic acid (PTA) price report by adding a FOB (free on board) Asia formula-based spot price assessment to better reflect current trading patterns and to provide a vital benchmark for industry players operating within the region.
The market dynamics for the Asian PTA sector have been shifting due to the decrease of imports from China. The country is now leaning towards being more self-sufficient, causing the prevailing CFR (cost & freight) China main port assessment to track less than 5% of the total PTA market share in the region. At the same time, the spread between the paraxylene (PX) feedstock and PTA prices have been narrowed in the last few years, shifting market dynamics towards a cost-linked route to stem losses.
To address changing market conditions and growing information needs, ICIS has introduced the FOB formula-based spot price assessment, an alternative quote that can be used for benchmarking contracts.
This new assessment will be largely based on a PX-PTA cost-linked formula, which includes the conversion ratio and additives costs gathered during the week, with deals taking precedence. In the absence of transactions, the assessment will be based on the best bids/offers gathered during the week.
“As trade to China decreases, the new FOB Asia formula-based spot price assessment serves as a baseline to eliminate uncertainty and enables industry players to assess Asia’s PTA market more objectively,” says Samuel Wong, markets editor of the ICIS Asia PTA price report.
By adding the new assessment, the ICIS Asia PTA price report now gives a complete picture of the region’s trading activity. The report provides all of the following:
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The Asian PTA markets remain volatile with both opportunities and challenges being faced by industry players. Keeping abreast of the latest prices and market updates is crucial when doing business in the region.
ICIS provides accurate and reliable pricing information, including a PX-PTA cost-linked index, which gives you better transparency on prices. Information on the various factors driving prices such as supply/demand, feedstock markets, downstream markets, production news and trading activity is also included.
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