PTA price sobers in Asia, Europe

Asian PTA prices sobered US$10 a ton CFR China and CFR Southeast Asia in the third week of June. In China, offers for bonded goods were down US$2 a ton, and discussions for nearby-month cargoes were down US$7 a ton on the week.

Purified terephthalic acid prices continued to inch down throughout the week in Asian market, posting a 30-week low. Cost support weakened as paraxylene values kept weakening while naphtha fluctuated with a slight drop, prompting PTA market to decline as well.

However, balanced supply and demand provided healthy support to PTA market to limit price drop. Some tight supply sentiment remained in the market due to the various planned and unscheduled turnarounds. However, the processing margins have risen in recent weeks, but it will difficult to raise them further.

European PTA market was performing quite well as downstream PET demand was increasing due to warmer weather in most parts of the region. European contract price for PTA was down Euro5 a ton FD NWE on the week.

In US, PTA spot rolled over on the week.

Courtesy: Weekly PriceWatch Report