What Is PTA?
PTA, or Purified Terephthalic Acid, is an important primary raw material in the production of polyester, a highly important synthetic material.
PTA is a crucial raw material in the production of polyester fibers, films, and resins, which are used to manufacture numerous everyday essential products.
According to a report by Information Technology IT, the global Purified Terephthalic Acid market is anticipated to rise at a considerable rate between 2024 and 2031. The growing demand for PTA stands as a testament to its indispensable role in today's consumer-driven world.
Purified Terephthalic Acid Uses
From the clothes we wear and the bottles that package our beverages to the fabrics adorning our homes, PTA is an essential building block that contributes to the convenience and comfort of modern life.
As developing countries become more urbanized and the middle class grows, the need for polyester products is rising. The world market and advancements in textiles and packaging show a bright future for PTA. This further solidifies its position as a sought-after commodity in an ever-evolving market landscape.
China is leading the growth of the purified terephthalic acid market, dominating the PTA market. The growing demand also makes PTA Futures one of the most actively traded contracts in the world.
This article aims to delve into the prospects of China's Purified Terephthalic Acid (PTA) Futures in 2024.
ZCE PTA Futures Contract
Despite PTA being widely used, finding PTA futures can be challenging. As of June 2023, Zhengzhou Commodity Exchange (ZCE) is currently the only exchange offering PTA futures contracts to the global trading community.
The future was initially introduced in December 2006 for domestic traders and later expanded in 2018 to facilitate international trade and financial services.
However, global traders are required to go through an overseas intermediary like Orient Futures Singapore to trade in the Chinese market through the Zhengzhou Commodity Exchange (ZCE).
Orient Futures Singapore provides convenient access to PTA futures from the ZCE for international traders.
Orient Futures Singapore also provides access to other Chinese trade exchanges such as Shanghai International Energy Exchange (INE) and Dalian Commodity Exchange (DCE).
ZCE PTA Futures Contract Specification
The ZCE PTA Futures Contract has the following specifications:
The ZCE PTA Futures Contract has a minimum price fluctuation of CNY 2/metric ton.
Contract months are monthly all year round.
The last trading day of the contract month is the 10th trading day of the delivery month.
Zhengzhou Commodity Exchange trading hours are from Monday to Friday, at these trading hours:
9:00 a.m.-11:30 a.m. 1:30 p.m.-3:00 p.m. (Beijing time)
ZCE PTA Futures symbol: TA
ZCE Purified Terephthalic Acid Market News
Purified Terephthalic Acid Price
According to CN Gold, the PTA futures contract experienced significant fluctuation at the start of the year. It reached its prices rise peak on 12th January at 5818 yuan, showing a 0.91% increase.
Purified Terephthalic Acid PTA Supply and Demand
CN Gold reported that the instability in the Middle East prompted Saudi Arabia to stabilize the crude oil market, resulting in a surge in international oil prices.
Despite adjustments in production capacity, Terephthalic Acid (TA) load increased to 83.8%, with Paraxylene (PXN) reaching $355 per ton. Seasonal declines in terminal orders and an 89.9% load in polyester production contribute to a CNY 308 per ton spot TA processing spread.
The rebound in crude oil creates mid-term supply and demand pressure on TA, influencing temporary fluctuations in PTA prices.
PX plant restarts elevate supply pressure, projecting a weak and fluctuating trend in PTA prices due to seasonal demand decline.
Stable downstream polyester production, ample PTA supply, and year-end expectations of weakening terminal demand shape the PTA landscape.
The potential January PTA inventory accumulation prompts attention to subsequent maintenance situations. Despite fluctuating crude oil prices, PX stabilization keeps cost support neutral. Short-term PTA dynamics are cost-influenced, requiring monitoring of crude oil trends.
Purified Terephthalic Acid PTA 2024 Outlook
According to a market research report by Tech Navio, the purified terephthalic acid (PTA) market size is estimated to grow at a CAGR of 5% between 2023 and 2028, with a forecasted increase of USD 16.88 billion.
The purified terephthalic acid market growth is because of several factors. One factor is the increased consumer demand for packaging materials. Another factor is the growing demand for PTA in the textile industry. Additionally, the rise of bioplastics is also contributing to the growth of the market.
The accelerated purified terephthalic acid market growth is attributed to factors such as the rising demand for packaging material, increased demand for PTA from the textile industry, and the emergence of bioplastics.
The surge in demand for PTA from the textile industry is a significant driver of market growth. PET fibers, preferred for manufacturing textiles requiring high resistance, find applications in a wide range of products such as carpet textiles.
PET fibers are strong and used in many things like seat belts, conveyors, drive belts, car tire yarns, and medical clothes.
The rapid growth of the textile sector, propelled by increased disposable income and consumerism, contributes to the rising demand for PET fibers, consequently impacting the purified terephthalic acid market positively.
For instance, India, a major textile producer, is expected to grow at a CAGR of approximately 10%, leading to increased demand for PET fibers in the textile industry and positively influencing the global PTA market.
However, environmental concerns related to PET production and application pose a significant challenge to PTA market growth.
The environmental hazards associated with PET production and use present a notable challenge to the PTA market. Increasing concerns about the environmental impact of PET have led to various nations, including the US, Japan, and European Union nations, imposing bans or limitations on the use of plastics and their derivatives.
Government regulations restricting the use of plastic bags are already in place in many of these nations, and with others expected to follow suit, ecological considerations regarding PET are anticipated to hinder the growth of the global PTA market.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
