For the Quarter Ending March 2025
North America
In Q1 2025, the North American PTA prices showcased volatility shaped by shifting demand patterns and external challenges. January began with a rise in restocking activity, driven by optimism and new orders from downstream sectors. However, demand quickly softened once inventories were replenished, especially from the polyester sector. Despite this, PTA prices in the USA held steady during January due to port congestion caused by extreme winter.
By early February, PTA prices began to rise as supply constraints worsened. Several PTA plants in the U.S. declared force majeure due to flooding and severe weather, tightening availability even further. Manufacturing costs stayed high amid rising feedstock costs, particularly for propylene and paraxylene, which added to the strain on PTA margins.
Demand for PTA from the polyester sector remained subdued throughout the quarter amid cold weather in the U.S. slowed weaving operations. Inventories at converter facilities were high, and purchases were mostly limited to immediate production needs. Similarly, the packaging sector faced muted demand due to seasonal slowdowns and tariff uncertainties, with minimal spot market activity.
APAC
The first quarter of 2025 saw PTA prices in the APAC region, characterized by decreasing prices, followed by an uptrend. January began with a rebound in PTA prices in Thailand, driven by tight supply from China and a surge in restocking ahead of the Lunar New Year. Traders were active despite weaker performance in the polyester and packaging industries. The market remained supported by increased manufacturing costs due to rising feedstock prices and limited availability caused by vessel delays and freight disruptions. Quarterly, PTA prices in the USA have increased by 2.2% as compared to the fourth quarter of 2024. In March, the PTA prices in Thailand saw continued softness. Demand from downstream sectors such as polyester and packaging remained weak throughout March. Polyester processors operated at reduced rates, dealing with sluggish orders and high inventories. The packaging industry also showed little improvement, as trade uncertainties and seasonal sluggishness limited buyer interest. Meanwhile, a significant drop in upstream crude oil prices and reduced freight costs made imports cheaper, leading to more competitive market conditions.
Europe
In Q1 2025, the European PTA prices witnessed an increasing trend of 1.1% as compared to the fourth quarter of 2024. In January, despite the soft demand, PTA prices in Germany remained relatively firm, mainly supported by reduced production and limited supply. Several PTA plants in Europe, including Germany, experienced shutdowns due to high production costs and harsh winter weather, tightening the supply. Additionally, delays caused by port congestion and disrupted trade routes, particularly around the Cape of Good Hope, contributed to this supply squeeze. These logistical challenges, combined with increased freight charges, reduced spot market activity and pushed prices up. In February, feedstock costs such as propylene and paraxylene rose sharply, leading to higher manufacturing expenses for PTA producers. Although polyester operating rates remained low and demand did not pick up significantly, the ongoing shortage in raw material availability kept the market tight. Meanwhile, interest in recycled PET (r-PET) showed signs of growth, driven by new EU regulations encouraging the use of recycled content in packaging. This shift brought a slight uplift in PTA demand linked to recycled production chains.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American Purified Terephthalic Acid (PTA) market witnessed a significant decline in prices. During October 2024, PTA prices in the USA experienced a sharp decline despite a high volume of trading activity. A surge in offers at lower price points attracted significant demand from processors, who eagerly sought discounted material. This influx of competitively priced offers boosted market sentiment. Moreover, increasing PTA inventories across the domestic market exacerbated the downward pressure on prices, leading to a decline in market sentiment.
However, any improvement was constrained by supply chain disruption due to labor strikes and high polyester operating rates. These counterbalancing factors ultimately led to stable PTA prices during November.
Henceforth, the overall market was weighed down in December by sluggish demand as several buyers were prompting cautious trading behavior among market participants due to the destocking procedure. Moreover, rising inventories of polyester products such as partially oriented yarn (POY), drawn textured yarn (DTY), and fully drawn yarn (FDY) showcased low demand for PTA.
APAC
The fourth quarter of 2024 has been challenging for the Purified Terephthalic Acid (PTA) market in the APAC region, characterized by decreasing prices. The decline in PTA prices in October was not driven by a decrease in orders but rather by increased supply. Manufacturers, faced with ample inventory, offered significant promotional discounts to stimulate demand. This competitive pricing environment led to lower quoted prices, contributing to the overall price decline of PTA. Moreover, the upstream crude oil prices have continued to decline which lowered the manufacturing costs during this period. While the completion of maintenance activities is expected to increase PTA plant operating rates in mid-to-late November, the overall market remains subdued. Sufficient spot supply and the off-peak season for polyester demand are limiting upward price momentum. Additionally, declining prices for Asian downstream PET resin have eroded the margins of PTA producers. Consequently, the overall market experienced subdued demand as several buyers adopted a cautious trading approach due to ongoing destocking activities.
Europe
In Q4 2024, the European Purified Terephthalic Acid (PTA) market witnessed a decrease in prices. In October, prices plummeted despite high trading activity. A competitively priced offer from sellers enticed processors, driving prices down. While reduced plant operating rates were expected to tighten supply, ample availability and aggressive discounting by manufacturers negated this effect. Furthermore, mounting PTA inventories within the domestic market exerted significant downward pressure. The sluggish Euro economy and tepid end-user demand, a post-summer slump persisted, have further dampened domestic consumption of downstream PET. The intense Asian competition among suppliers has led to steep discounts, further exacerbating the price decline in Europe. Moreover, the market entered a period of sluggishness in December. Destocking activities by buyers instilled caution amongst market participants, leading to subdued demand. This trend was further exacerbated by rising inventories of key polyester products such as partially oriented yarn (POY), drawn textured yarn (DTY), and fully drawn yarn (FDY), indicating weak downstream demand and consequently, a diminished appetite for PTA.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Purified Terephthalic Acid (PTA) market witnessed a significant decline in prices, reflecting a challenging pricing environment. This decrease was primarily influenced by several key factors. Weak demand from downstream industries, such as plastics and textiles, contributed to the downward pressure on prices.
Additionally, oversupply in the market due to resumed plant operations and excess material from international sources further dampened price levels. Despite the logistical disruptions caused by hurricanes and transportation, the low consumer enthusiasm offset any upward price trajectory during third quarter.
Focusing specifically on the USA, the market experienced the most significant price changes in the region. Moreover, there was a 2% decrease from the previous quarter in 2024, highlighting a continued downward trajectory. The first half of the quarter showed a price comparison with the second half at -2%, demonstrating a consistent decrease in pricing over the period. The quarter-ending price for PTA in the USA stood at USD 1390/MT, reflecting the prevalent negative sentiment.
APAC
The third quarter of 2024 has been challenging for the Purified Terephthalic Acid (PTA) market in the APAC region, characterized by decreasing prices. The monsoon season has somewhat increased the disruption, leading to low inventory levels along with the high production costs due to rise in feedstock Propylene during July 2024 which marginally increased the price trend. However, several significant factors have declined market prices during August 2024, including subdued demand from downstream industries, low consumer spending sentiment, and weak orders from the polyester sector. In addition, a drop in freight rates from high levels significantly offset any possible price hikes during this period. Prices were further pressured by the excess material in the neighbouring countries which created market competitive during September 2024. Japan, in particular, has experienced the most significant price changes during this period. The second half of the quarter saw a further decline of -3% in prices. The quarter-ending price of USD 576/MT of Purified Terephthalic Acid (PTA) FOB Tokyo in Japan reflects the overall negative trend in pricing, with a consistent decrease in sentiment and a challenging market environment.
Europe
In Q3 2024, the European Purified Terephthalic Acid (PTA) market witnessed a decrease in prices, followed by an uptrend. During July 2024, PTA prices increased despite sluggish demand from the downstream polyester industry due to its offseason. While new orders for plastic downstream products remained weak, and most downstream production barely generated profits. However, the European market for the downstream PET market has seen a surprising shift in recent weeks. While sustainability efforts have pushed for increased use of recycled PET, a change in pricing dynamics has caused a swing back towards virgin PET which certainly increased the inquiries for PTA in Europe. Furthermore, PTA's production costs have increased because of rising crude oil prices, putting upward pressure on imported prices. However, PTA prices in Germany dropped in September 2024 due to a decline in the downstream polyester demand at popular export destinations and continued to soften amid a lack of market activity during the summer season. Although Europe has faced transportation issues due to the Red Sea, the supply of PTA was unaffected due to the resumption of operations at several plants, following maintenance shutdowns, which led to an oversupply of PTA in the domestic market.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has been a period of notable mixed trend from bullishness toward bearishness for Purified Terephthalic Acid (PTA) pricing in the North American region.
During April 2024, Easter weekend in the United States this year demonstrated a sharp increase in the price of PTA, an essential raw material for plastic beverage bottles. This price increase has affected the price of bottled beverages during the height of summer. After Easter, beverage bottle production in the Americas typically ramps up significantly in anticipation of the summer heat. This annual increase in demand for PET (polyethylene terephthalate), the plastic used in beverage bottles, sets off a domino effect whereby manufacturers rush to meet the demand, driving up the price of PTA during May 2024, the essential component of PET.
However, in June 2024, a significant decrease in downstream demand from the polyester and PET resin industries despite a disruption in supply chain logistics influenced the PTA market to remain bearish. Market participants exhibited cautious sentiments, further declining demand and prices. Additionally, a reduction in raw material costs, notably crude oil, helped counterbalance increased freight charges due to global supply disruptions and adverse weather conditions affecting logistics.
APAC
The second quarter of 2024 for the PTA market in APAC has been characterized by a stable pricing environment, from bullishness toward bearishness which balanced out an overall sentiment. The equilibrium has been primarily driven by a confluence of factors, including balanced supply and demand dynamics, and consistent production rates. The region's PTA market has not witnessed significant volatility due to ample inventory levels and consistent industrial output, which have alleviated any potential supply pressures. Moreover, downstream industries such as polyester and PET resins experienced moderate demand, further contributing to the steady pricing environment. Focusing exclusively on Japan, the PTA market has shown the most significant price changes within the region. Despite the overall trends of stability, Japan experienced a 3% price increase compared to the same quarter last year, a reflection of the underlying seasonal trends and a minor uptick in demand from the downstream bottling sectors during the summer driving season. The latest price at the end of the quarter settled at USD 601/MT of PTA FOB Tokyo.
Europe
The second quarter of 2024 has demonstrated a notable uptrend in the pricing of Purified Terephthalic Acid (PTA) in Europe, driven by several pivotal factors. The overall trend reflects an increasing sentiment, influenced by seasonal demand spikes from the packaging and bottling industries. However, April 2024 witnessed a declining trend due to abundant supply and producers' reluctance to raise prices to prevent customers from moving further toward imports. This welcome change comes after the low activity was not because of a lack of downstream buying appetite, but because the producers in derivative markets were trying to satisfy consumer interest in their separate marketplaces. While, a stronger escalation was observed in the second half, including heightened freight charges due to ongoing disruptions in global supply chains, particularly in the Red Sea, and port congestion, which has resulted in extended lead times and increased shipping costs. Additionally, geopolitical tensions have impacted the logistics of PTA, further constraining supply during May 2024. Despite these logistical challenges, a resurgence in demand from the downstream polyester and PET resin sectors, typically peaking during this period, has placed upward pressure on prices. The availability of feedstocks such as paraxylene has also seen fluctuations, contributing to higher production costs and, consequently, elevated PTA prices during June 2024.
