The oscillating Purified Terephthalic Acid prices in China witnesses a fall again

The unprecedented energy prices have been reflecting the complete chain of the PTA industry, affecting its price trend. In March, the Purified Terephthalic Acid market oscillated with prices gearing up and down in accordance with changing market dynamics. As per ChemAnalyst, the prices for Purified Terephthalic Acid have been volatile and settled at USD 1002 Ex-Qingdao (China) & USD 879 FD Hamburg (Germany).

Several countries have been retreating from trade disruptions caused by the Russia-Ukraine war and further financial sanctions on Russia. In line, another covid outbreak in China has imposed a lockdown in the city of Shenzhen, disrupting the demand-supply chain in the domestic market. The operating load of the industry is around 74%, with high inventories available. The downstream PET and textile industries were seen operating at high rates, but the demand from the Chinese domestic market has been weak along with the stable demand from European countries. Thus, the quotation for purified terephthalic acid saw a downward trend despite rising crude oil value. As of March 29th, 2022, the end-user factories in Jiangsu and Zhejiang have lowered their prices steadily by 15.70 USD/ton to 31.40 USD/ton.

Further, against China’s zero covid policy, port Yantian, the major exporting port to Europe, has been closed, hampering the supply chains.  According to the sources, there was a 28.5% increase in the number of vessels waiting outside of the port of Yantian, which has been closed due to the current lockdown in some provinces including Jilin, and Guangzhou.

As per Chem Analyst, “Purified terephthalic acid market may see high demand from its downstream PET industries amides the seasonal change hitting northern hemisphere. Daily fluctuating crude oil may further affect the trend to follow a zigzag movement. Thus, it is anticipated that the Purified Terephthalic Acid market will witness more such plant closures in the upcoming period”.