Although the oversupply of purified terephthalic acid (PTA) in Asia has eased recently, with a large amount of new production capacity about to be put into use, market participants expect that the market may be oversupplied again in the near future and the market will fall into a downturn. China’s PTA oversupply problem eased in August due to planned maintenance of several units.
In addition, India’s Materials Chemistry and Properties International (MCPI) shut down its 470,000 tons/year No. 1 PTA unit, and Reliance Industries (RIL) shut down its Hazira No. 2 PTA unit. The operating rate of India’s downstream polyester industry continues to remain at a low level of 30% to 40%. In South Korea, the operating rate of PTA manufacturers has dropped slightly to about 80%, while some PTA units in Taiwan are also undergoing planned maintenance. Due to the spread of the domestic epidemic in Indonesia, many domestic PTA units were shut down from March to July. At present, all PTA units have resumed operation.
According to statistics, Asia’s PTA production losses increased slightly from the previous month in August, but future production suspension plans are limited. In addition, a large number of new PTA factories will be put into production in the fourth quarter of this year, ushering in a wave of market impact. The planned PTA production capacity is approximately 7.1 million tons/year.
In the past 10 years, the global textile and apparel industry has entered a downward cycle, and this year’s epidemic has exacerbated the weakness. The bearish outlook for downstream demand may continue to suppress the PTA industry, with supply significantly exceeding demand.
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