Isophthalic Acid Price Stability Rooted in Stagnant Downstream Demand and Declining Feedstock Costs
Isophthalic Acid Price Stability Rooted in Stagnant Downstream Demand and Declining Feedstock Costs

Isophthalic Acid Price Stability Rooted in Stagnant Downstream Demand and Declining Feedstock Costs

  • 18-Oct-2023 6:48 PM
  • Journalist: Jacob Kutchner

Isophthalic Acid prices in the US market continued to remain stable from previous weeks as fluctuations in the demand strength remained on the softer side, consequently impacting the overall price range of Isophthalic Acid. The reason for the consistent inquiries received by US Isophthalic Acid manufacturers can be attributed to the lack of enthusiasm shown by both the US government and buyers. Moreover, the continuous decline in the feedstock (Mixed Xylene) prices in the domestic market impacted the overall production cost of Isophthalic Acid, providing a better profit margin for the Isophthalic retailers. As of the week ending October 13th, the quoted price for Isophthalic Acid stood at USD 1460 per metric ton, CFR Texas, in the US market.

A significant portion of the demand for Isophthalic Acid comes from online food and beverage services, which rely on PET bottles and containers due to their sustainability and durability. This factor has sustained the demand for Isophthalic Acid in the US market. Towards the end of the third quarter, the consumer price index (CPI) recorded a 0.4% increase, maintaining the annual rate at 3.7%, consistent with August. This was in contrast to market participants' anticipation, which was a 0.3% monthly increase in the US market. Moreover, crude oil futures saw a decline in trading as an industry report pointed to a rise in crude oil stockpiles in the United States.

Another major facet that impacted the overall price dynamics of Isophthalic Acid is the suppressed demand for PET resins and flakes in the Asian market, which is also a major exporter of Isophthalic Acid for US buyers. According to one of the major players, Isophthalic and PET, the limited demand for recycled plastics in China has prompted many recyclers in Southeast Asia to focus on their domestic markets while also exporting to the United States. On the other hand, the PET volumes in California are atypically low, but demand remains steady, as stated by the Plastic Recycling Corp.

Certainly, the temporary suspension of craft beer festivals is just one manifestation of a more extensive consumer trend. The demand-supply imbalance for Isophthalic Acid persisted between domestic traders and retailers in the US and the Isophthalic Acid sellers in Asian countries such as China and South Korea. Last week, the US dollar slightly increased, building upon the previous session's gains. This was driven by robust US consumer price data, which heightened expectations that the Federal Reserve might need to maintain higher interest rates for an extended period to control inflation.

Related News

Weak Cargo Demand Impacts the Isophthalic Acid Trade Volume in the US Market
  • 29-Nov-2023 5:50 PM
  • Journalist: Robert Hume
US Isophthalic Acid Prices Drop Amid Sluggish Downstream Demand
  • 10-Nov-2023 2:33 PM
  • Journalist: Shiba Teramoto
Isophthalic Acid Prices Remain Stagnant In the US Market Amid Moderate PET Demand
  • 25-Sep-2023 5:58 PM
  • Journalist: Gabreilla Figueroa
Isophthalic Acid Prices Sail at the Edge as They Suffer From Weak Demand in the US
  • 24-Aug-2023 3:53 PM
  • Journalist: Timothy Greene