Purified Terephthalic Acid Price in India Expected to Rise
- 15-Nov-2021 6:19 PM
- Journalist: Jai Sen
The prices of Purified Terephthalic Acid (PTA) which fell last week are expected to rebound this upcoming week with one of the major suppliers of PTA raising the prices for the product. The prices were following an upwards trajectory for three to four weeks prior to the last week which experienced a slight fall in the prices. The prices were INR 88340 per tonne on November 5 which was higher as compared to the prices in September, the prices slightly fell to INR 87220 per tonne on November 12. The prices are expected to rebound again and maintain an upwards trend.
The price rise is triggered by supply shortage in China and a price hike by Reliance Industries Limited which is one the major suppliers of MEG in India.
Purified Terephthalic Acid is widely utilized as a feedstock for high performance plastics like Polyethylene Terephthalate (PET) Polybutylene Terephthalate (PBT) and others. It also finds huge consumption in the global polyester industry due to its high resistance towards chemicals and stains. These materials produce polyester coating resins for formulation of appliances, automotive, metals and several industrial equipment. The demand of PTA stood at 6.3 million tonnes in India in FY2021 and is expected to grow at a CAGR of 3.5% during the upcoming years till FY2030.
As per ChemAnalyst, “the prices of PTA are expected to reach the INR 900000 per tonne mark in the upcoming couple of weeks as the supply is expected to remain tight in China. The prices will tend to stabilize in the medium term as the inventory levels rise up in India. With the current inventory at lower levels, the buyers will tend to stockpile the product due to worries of a further price hike. This will create high inventory levels and hence the prices will tend to stabilize in the medium term.”