Interviews
Asian PTA market in doldrums
25 Nov '11
2 min read
In recent times, Asian prices of PTA have fallen, which has led to producers suffering sharp decline in profits or even losses.
Demand is pale and global macroeconomic situation does not look optimistic. The PTA industry began cutting operating rates in October and is preparing to cut production further, in order to reduce losses.
Currently, the spread between PTA and PX has narrowed to US $90-110 / ton, while spread between the two products was as high as US $300-400 / ton, during January to April this year.
For most Asian PTA producers, profits can be generated only when the spread is at least between $150-180 / ton.
PTA price fell from its 16-year high of US $1515-1530 (CFR, China main port) at the end of March to $1045-1050 / ton (CFR, China main port) on November 18.
Market analysts point out that slowdown in demand from downstream textile industry, has resulted in lower orders for PTA. They also point out that; the situation will not improve before February next year.
Meanwhile, the debt crisis in euro zone and concerns of a weak US economy continue to affect market trends, leading to pessimistic sentiments in the markets.
Recent closing of Asian factories has reduced 6.73 million tons / year of supply in November, accounting for 15 percent of total output.
Demand is pale and global macroeconomic situation does not look optimistic. The PTA industry began cutting operating rates in October and is preparing to cut production further, in order to reduce losses.
Currently, the spread between PTA and PX has narrowed to US $90-110 / ton, while spread between the two products was as high as US $300-400 / ton, during January to April this year.
For most Asian PTA producers, profits can be generated only when the spread is at least between $150-180 / ton.
PTA price fell from its 16-year high of US $1515-1530 (CFR, China main port) at the end of March to $1045-1050 / ton (CFR, China main port) on November 18.
Market analysts point out that slowdown in demand from downstream textile industry, has resulted in lower orders for PTA. They also point out that; the situation will not improve before February next year.
Meanwhile, the debt crisis in euro zone and concerns of a weak US economy continue to affect market trends, leading to pessimistic sentiments in the markets.
Recent closing of Asian factories has reduced 6.73 million tons / year of supply in November, accounting for 15 percent of total output.
Fibre2fashion News Desk - China
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