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Increased capacity may put pressure on Chinese PTA prices
May '13
China’s polyester production capacity at the end of 2012 was about 37 million tons. It is estimated that another 5 to 6 million tons of new polyester production capacity would be added in 2013, taking the total capacity to about 43 million tons.
However, the total polyester output at the end of 2013 would be actually less than 43 million tons, as some new plants may not go operational by then.
At present, the operating rate of polyester manufacturing units is about 82 percent, which translates to purified terephthalic acid (PTA) demand of about 30.32 million tons.
By 2012-end, China’s PTA production capacity was 36.41 million tons. Moreover, some new PTA plants are likely to go operational in the fourth quarter of 2013.
At present, PTA plants are operating at 78 percent capacity, and if the plants keep their operating rate constant for a long time, it will inevitably lead to oversupply of PTA in the Chinese domestic market, which, in turn, would put pressure on prices.

Fibre2fashion News Desk - China

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