PTA Prices Decline Amid Weakening Costs and Shifting Supply-Demand Dynamics
PTA prices have declined in recent days due to weakening costs and shifting supply-demand dynamics. According to SunSirs, the domestic PTA spot market has seen a slight pullback, with the benchmark spot price standing at 7,049 RMB/ton as of September 21, down 4.25% from September 17.
The decline in prices is attributed to ample supply in the Asian market, resulting from Saudi Aramco's sale of approximately 60 million barrels of crude oil to Asia via ship-to-ship transfers. This move has offset the export shortfall caused by damage to the pipeline at Yanbu Port and exerted downward pressure on spot crude prices.
On the supply side, multiple PTA units that had previously undergone maintenance are restarting in quick succession, pushing the industry operating rate up to around 72%. The volume of marketable supply is gradually rising, with further increases expected to materialize.
However, demand has fallen short of expectations for the traditional peak season, acting as the primary constraint on market performance. Operating rates in the downstream polyester sector have retreated to around 74%, and follow-through on end-market textile orders remains weak.