Asian PTA prices were up US$12 a ton CFR China and CFR Southeast Asia in the first week of February. The CFR India marker was up US$10 a ton on the week, based on tradable indications. Purified terephthalic acid spot prices increased further as paraxylene contract price for February was finally settled, lending strong support to PTA from the cost side.
After the week-long holiday, the resumption of weaving and knitting operation in China will drive demand. With healthy cost support, PTA markets are expected to stay firm in coming weeks.
In US, PTA January price settled higher as rising paraxylene contract pushed PTA up. PTA for January increased US cents 1.26 per pound (US$972 a ton) FOB USG.
In Europe, PTA was up on higher 2017 premium to feedstock paraxylene as January contract price of PTA rose on the month, reflecting a higher premium heard for 2017 on PTA conversion from feedstock. PTA January contract price rose Euro10 a ton on the week.
Courtesy: Weekly PriceWatch Report
