As of January 19, China's PTA spot market price stood at about 8,800 Yuan / ton, up about 4.14 percent compared with 8,450 Yuan / ton on December 12.
Chinese PTA producers like, Xianglu Petrochemical, Far East Petrochemical and Yi Sheng Petrochemical have announced their December settlement price at 8,700 Yuan / ton and January listing price at 8,800 Yuan / ton.
The main reasons causing significant rebound of PTA spot price are strong support from upstream costs and strong demand from downstream sector.
However, PTA spot price will encounter greater resistance in coming days. One of the main reasons being, excess capacity and low utilization capacity rates.
Asian PTA capacity stood at 43.7 million tons in 2011. According to ICIS data, PTA production capacity in Asia will increase by 26 percent in 2012; all new capacity will be concentrated in China.
PTA producers in Asia will face pressure of excess capacity this year. Current operating rate of PTA plants is about 80 to 85 percent and this rate may further decline in the future.
Fibre2fashion News Desk - China
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