In June 2025, US Purified Terephthalic Acid (PTA) prices dipped slightly by 0.5% despite rising crude oil costs driven by Iran-Israel tensions. The usual demand boost from the US driving season was absent as buyers showed low interest due to high inventories, weak downstream demand (from packaging, polyester, and textile sectors), and rising freight costs. Market sentiment remained cautious, with converters delaying purchases amid poor order visibility. Upcoming storm season and global overcapacity are expected to further pressure PTA prices in July.
The US Purified Terephthalic Acid (PTA) market experienced a marginal decline as June 2025 commenced despite a concurrent increase in feedstock crude oil prices, highlighting the dominant influence of other market dynamics. Despite the start of the US driving season, which usually boosts demand for related products, trading activity in the PTA market remained muted.
Nonetheless, the general market sentiment remained mild due to cautious buying from downstream industries, which was fueled by persistent trade worries. Due to either a lack of urgent need or an abundance of existing inventory, buyers in the USA indicated little enthusiasm in making new purchases.
Key Takeaways:
As the Israel-Iran confrontation intensified, feedstock crude oil prices increased by 11%.
There was little downstream trading activity.
The need for packaging was not sufficiently stimulated by the US driving season.
There was little interest shown by the polyester and textile industries.
Purchasing activity was further slowed by rising freight costs.
According to ChemAnalyst, the approaching off-season of the downstream polyester and packaging industry is predicted to cause a drop in PTA prices in the USA in July. Furthermore, the market's enthusiasm toward procurement may be further dampened by the impending storm season.
According to the most recent news, as June 2025 got underway, PTA prices in the USA slightly decreased by 0.5%. Growing freight costs have become a major issue for distributors and importers. Even though the price of raw materials is consistent or declining, these high shipping costs further reduce profits and make imports less appealing, which slows trading activity.
After early July, converters, a significant PTA customer segment, faced a lack of new orders from the downstream packaging and polyester industries. They avoided making PTA purchases right away due to this lack of future foresight, indicating a wait-and-see strategy. PTA manufacturers were forced to lower their prices during this time in order to boost sales and control inventory levels due to the widespread slow demand and buyer hesitancy.
The onset of the beverage-driven seasonal peak in mid-June was muted. Moreover, global chemical overcapacity, which continues to weigh on the US PTA market, and soft Purchasing Managers’ Index readings, both signal subdued industrial activity and limited PTA offtake.
However, the cost of manufacturing has gone up due to an increase in the price of crude oil upstream. WTI and Brent oil prices have risen 9.6% and 11.5%, respectively, to continue their upward trend and reach their highest close since January 22. Due to the disruption of the world's crude oil supplies caused by the weekend's increased tensions between Iran and Israel, crude oil prices have been rising for the past two weeks.
Despite all these negative factors, the PTA supply was not hampered due to previously stored stocks within the domestic as well as international markets.
