The hottest PTA Market in Asia is expected to be o

2022-08-12
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The PTA Market in Asia is expected to be oversupplied in the first half of the year

the PTA Market in Asia is expected to be oversupplied in the first half of the year

January 5, 2021

according to Platts energy consulting, with a large number of new capacity put into production in China in the first half of 2021, the PTA Market in Asia will be oversupplied, which will impact the profit margin of PTA production and urge Northeast Asian producers to find other distribution channels. Market participants predict that PTA goods in Northeast Asia will begin to be sold to other markets such as India, the Middle East and Europe

according to market analysts, in the first half of 2021, China will have a total of 7.9 million tons/year of new PTA production capacity, including the 2.5 million tons/year PTA plant of Fujian Baihong group in Quanzhou, the 2.4 million tons/year PTA plant of Shenghong petrochemical in Lianyungang, Jiangsu, and the 3 million tons/year PTA plant coating of Yisheng petrochemical in Ningbo, Zhejiang. This means that China's PTA capacity in the first half of 2021 will increase by nearly 14% over the end of 2020

however, industry insiders predict that after the new capacity is put into operation, the overall operating rate of PTA plants in China will decline in 2021, because the growth of downstream polyester fiber demand lags behind the expansion rate of PTA capacity. Since the second half of 2020, PTA inventory in the Chinese market has been hovering at a record level of 3.6 million to 4 million tons, much higher than the usual level of 1 million to 1.5 million tons before the outbreak of the COVID-19, mainly due to the production of new production capacity and weak demand

with the intensive expansion of China's domestic PTA production capacity, South Korean PTA exporters will continue to aim at the European and Turkish markets and use the free trade agreement to swing without dead center restrictions; Take the advantage of high speed ratio turbine reducer to change speed. From January to October 2020, South Korea exported a total of 1621 tons of PTA with high molecular polymer tensile properties, of which only 92272 tons were exported to the Chinese market, a significant decrease year-on-year. According to customs data, in 2019, South Korea exported 2.08 million tons of PTA, including 255906 tons to China

in the first half of 2021, the time of Pt in India will turn back to 2002, and the a market may be tight, resulting in an increase in imports. India is the second largest PTA Market in Asia. According to Indian customs data, before the outbreak of COVID-19, India usually imported 50000 ~ 60000 tons of PTA per month

affected by the planned and unplanned shutdown of domestic PTA production units, the Indian PTA market has been facing the problem of domestic supply shortage since mid September 2020. At the same time, some PTA manufacturers in India began to enter the downstream business in August, increasing the PTA supply of newly acquired polyester production facilities and reducing some market supply. The current tight supply in India's domestic PTA market may continue until 2021, because there is no new PTA capacity production plan in India in 2021

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