For the Quarter Ending June 2022
North America
In North America, Purified Terephthalic Acid (PTA) prices were observed inclining for April and June, but they dipped in May. This attribution came on the back of fluctuating crude oil prices, which remained volatile during the second quarter. Further, soaring cost pressure from its raw material market like Paraxylene also contributed to the rising price trend in the first and second half of Q2. Demand for the product during the period remained stable in the regional market. It caught its pace in demand during June when there were high orders for Polyethylene Terephthalate (PET) bottles in the packaging sectors. Thus, to conclude this, ChemAnalyst prices settled at USD 1033/MT FOB Charleston during June.
APAC
In China, Purified Terephthalic Acid prices were observed at Lowered in the first half of the second quarter, which gained momentum during the second half of Q2. Petrochemical markets were mainly ruled by the volatile crude oil prices hovering the price for PTA around USD 1003/MT Ex-Qingdao during June. Since the resurgence of Covid-19 in the Chinese market, the Purified Terephthalic Acid (PTA) plant operating rate reduced alongside decreasing demand from downstream Polyethylene Terephthalate (PET) bottle and polyester industries. At the same time, the Indian market flourished throughout Q2, backed by the consistent demand for PET bottles from the packaging sector. Feedstock paraxylene remained strong in the domestic market with firm crude oil prices. Further, India’s dependency on the import market from South Korea and China has created limited availability of the product in the regional market due to supply disruption and high transportation costs, which has eventually culminated in the hike in the price. Therefore, considering these factors, the price rose in the Indian market and hovered around USD 1250/MT Ex-Silvassa in June 2022.
Europe
In Europe, Purified Terephthalic Acid (PTA) prices increased during the H1 of Q2, which later dipped in the second half by approx. 3% in the European market. Demand from downstream Polyethylene Terephthalate (PET) bottle and polyester industries boosted on the verge of approaching summer season in Europe. Further, hit the crunched supply situation in European countries amidst the Russia-Ukraine market, keeping the prices at the high end. In addition, due to the global crisis, the crude oil market was hit harder with its value skyrocketing, ultimately affecting the pricing of all petrochemical derivative products. Thus, considering the reasons mentioned above, the price for PTA fluctuated during the second quarter and settled at USD 1012/MT FD Hamburg in June 2022.
For the Quarter Ending March 2022
North America
In North America, the price for Purified Terephthalic Acid witnessed a seesaw trend where prices declined in January, rebounded in February, and again dipped in March. The feedstock prices too fluctuated with the volatile crude oil price. The downstream PET and polyester industries saw growth in demand from consumers and businesses as industrial activities picked up the pace. Further, revenue and sales of the major producers have also increased with the increase in their consumption from the consumer’s end. Therefore, strengthening supply dynamics and stable demand fundamentals have pressured market participants to weaken the prices of the available material in the later stage of Q1. After the conclusion of Q1, the price for PTA settled at USD 986 per MT FOB Charleston.
Asia Pacific
In India, after having a lacklustre Q4 2021, PTA prices in India have observed a change in momentum in Q1 2022. PTA prices steadily increased and the price change was attributed to the increased demand from downstream users and increased cost pressure from upstream xylene. Demand from downstream Polyester and Polyethylene Terephthalate remained strong throughout Q1 of 2022. Consequently, PTA prices after the conclusion of Q1 were assessed at USD 1084.91 (INR 82290) per MT Ex-Kandla. The Purified Terephthalic Acid market saw an upward trajectory in the Chinese domestic market on the back of high demand from downstream PET and textile industries and rising feedstock prices. In addition, Zhejiang Yisheng Petrochemical announced the permanent closure of its oldest 650 KTPA Purified Terephthalic Acid (PTA) No.1 line at its Ningbo site located in East China’s Zhenjiang province. Further in the later stages of Q1, against China’s zero-tolerance policy, port Yantian, a major exporting port to Europe, has been closed, hampering the supply chain dynamics. Thus, the price for PTA rose and settled at USD 962 per MT Ex-Qingdao in the first quarter of 2022.
Europe
The Russia-Ukraine war in H2 of Q1 caused havoc in crude oil prices globally, affecting crude oil derivatives price trend. During Q1, the prices of PTA in the European market declined in February, which later gained momentum in March. The wind of change was caused by improved demand from end-users and increased cost pressure from upstream Paraxylene. Afterward, the imports of crude oil and natural gas from Russia to Europe were hampered due to the logistics issues. Demand from downstream Polyester and PET remained firm throughout the quarter, where PET prices broke charts in Q1 amid spiking demand and limited product availability. Thus, amidst the volatile market, the price for PTA in Europe settled at USD 824 per MT FD Hamburg.
In quarter IV, PTA imports remained sluggish from South America and Asia. Mexico struggled with domestic production which curtailed exports to USA while resolutely high freight charges and shipping costs restricted the Asian exports to reach US shores. Meanwhile, downstream PET resins maintained strong volume intakes as consumption from packaging industry remained strong. PTA prices were assessed in strong ranges due to robust demand and lopsided supply dynamics. PTA price increased to USD 1170 per MT on FD basis in December.
APAC
Logistical issues plagued Indian PTA market in October which posed a major challenge for traders and in turn kept an upward pressure on domestic PTA prices. Other than just shipping woes, additional factor i.e., disturbance in production activities in Chinese market become an additional factor behind this steep rise in price of PTA across APAC region. Therefore, PTA prices rose significantly in October and assessed around INR 75640/MT CFR JNPT. Despite of the fact that demand for PTA reduced from downstream polymer segment in H2 of Q4, other sectors like textile, maintained stability for PTA demand across regional market. However, PTA prices in India tumbled in December influenced by low offtakes from downstream polyester segment.
Europe
PTA production remained underwhelming throughout which further limited the operating rates of downstream PET resin. Demand from PET remained strong throughout where market participants remarked that market have witnessing some outrageous consumption numbers from the end users. Increased usage of PET bottles across the continent in beverages and other applications pressured the demand for PET resin. Imports of PTA from were hampered due to resolutely freight charges and prolong turnaround time. Consequently, prices of PTA in Europe were assessed at an incessant rise in Q4 and were measured at USD 890 per MT in December on FOB basis.
