Views: 0 Author: Site Editor Publish Time: 2023-10-30 Origin: Site
Terephthalic acid (p-TA or TA) is a raw material for polyethylene terephthalate (PET) production which is used to make plastic bottles.
TA is an important part of our everyday life, it can be found in plastic bottles, photographic films, drugs, and polyester resins. The material is favoured for its lightweight qualities, its widely diverse usage, as well as its recyclability.
Despite the ubiquitous nature of the powder, PTA futures can be hard to find. Orient Futures Singapore currently provides an opportunity for international traders to access PTA futures.
The price of PTA is affected by all parties involved in its usage, for example, the paints and coating industry or the pharmaceutical industry.
Market overviews provide a general indicator.
As of early 2022, chemanalyst reported that the PTA price trends differed for countries.
North America witnessed a see-saw trend from January to February and March
Asia Pacific saw a rise in prices in countries such as India for Q1.
Europe also saw a decline in prices in February but gained momentum in March.
Apart from country-specific price trends, general prices were also forecasted to increase. Based on Market Watch news, The Global Purified Terephthalic Acid (PTA) market is anticipated to rise at a considerable rate during the forecast period, between 2022 and 2027.
The Chinese Market and Economic Conditions
PTA futures are largely linked to China; hence, it is also important to consider current plans by the country that may affect its pricing.
In 2020, China International Fair for Trade in Services (“CIFTIS”) central motto was “Global Services, Shared Prosperity”.
This stance on global connectivity through services or trade was reiterated by the Chinese government in 2022’s BRICS Initiative on Trade and Investment for Sustainable Development and BRICS Initiative on Enhancing Cooperation on Supply Chains.
With these plans in place, China has rapidly increased the country’s industrial scale and plants over the years. This has increased China’s supply while affecting others from the same industry.
For example, Mitsui Chemicals from Japan has announced plans to close-down Purified Terephthalic Acid Plant operations in August 2023. The company cites “a sharp rise in PTA manufacturing facilities – primarily in China – from the mid-2000s… coupled with a fall in Japanese domestic demand” as the main cause of the closure.
Hence, the Chinese market may affect trade conditions in the PTA industry as it develops and outcompetes competitors.