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Asian PTA demand surpasses capacity levels
28
Apr '11
Polyester constitutes the main end use segment of PTA, with 61% of the total global consumption. A hike in PTA price has resulted in an increase in the price of Polyester Staple Fibre (PSF).

In 2007, global consumption of PTA was 37 million tons. It is estimated to grow at 6% per annum and reach more than 50.5 million tons by the end of 2012. The industry is currently facing surplus capacity.

Massive capacity additions in the polyester industry have fueled the growth of PTA industry. Expansion of polyester capacity, more particularly in India, and China is likely to surpass the growth of PTA capacities.

This will make sourcing PTA tough during 2011, and a similar trend is likely to continue in the coming 2-3 years as well.

On the other hand, PTA producers would get good margins out of the same. PTA market is experiencing good margins and is positively expecting the same trend to continue in next year also.

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Fibre2fashion News Desk


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