PTA prices plunge in Asia

Asian PTA markers fell US$18 a ton CFR China and CFR Southeast in the second week of January.

In China, offers for bonded goods on one-day trip from suppliers moved down continuously, while buying interest remained softened. Buying ideas stayed below US$540 a ton, with the discussion at a stalemate.

Yisheng Petrochemical’s prices ranged between US$547-565 a ton while Hengli Petrochemical issued self-lifting offers at US$565-600 a ton.

Purified terephthalic acid prices declined in Asian markets on bearish outlook and buyers were heard to have dropped bids further amid falling PET and polyester prices. In China, a majority of polyester fiber and PET resin plants were reported to be operating at reduced rates of 70%-75%.

In US, the formula-derived December PTA price was set down from November, touching its lowest level since February.

Overall, there is still very low possibility for PTA market to change significantly in a short run.

The polyester chain is expected to remain under fluctuation, and players will wait for the guidance from market news before adopting any option.

Courtesy: Weekly PriceWatch Report