Asian PTA market may be down recently

Although the recent oversupply of purified terephthalic acid (PTA) in Asia has eased, as a large number of new production capacity is about to be put into use, market participants expect that the market may be oversuppressed in the near future and the market will fall into a downturn. The problem of oversupply of PTA in China eased in August because of the planned overhaul of several units.

　　 In addition, the Material Chemistry and Performance International Corporation of India (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 the downstream polyester industry in India continues to remain at a low level of 30% to 40%. In South Korea, the operating rate of PTA manufacturers has dropped slightly, about 80%, and some PTA devices in Taiwan are also undergoing planned maintenance. Due to the spread of the domestic epidemic in Indonesia, several domestic PTA devices were shut down from March to July, and all PTA devices are currently in operation. According to statistics, the loss of PTA production in Asia in August increased slightly compared with the previous month, but the planned suspension of production in the future is limited. In addition, in the fourth quarter of this year, a large number of newly-built PTA plants will be put into production one after another, ushering in a wave of market shocks. The planned production capacity of PTA is about 7.1 million tons per year.

　　 In the past 10 years, the global textile and apparel industry has entered a cycle of decline, and the epidemic this year has become even more sluggish. The bearish outlook for downstream demand may continue to suppress the PTA industry, with supply significantly exceeding demand.