What is PTA?
PTA, or Purified Terephthalic Acid, is an important primary raw material in the production of polyester, a highly important synthetic material.
Polyester has gained widespread recognition and adoption due to its exceptional versatility and remarkable properties. Due to its lightweight characteristics and durability, polyester is largely used in the manufacturing of plastic bottles, photographic films, polyester resins, and various other applications.
PTA is important in the production of polyester for three key reasons:
- It offers cost-effectiveness, making it a favorable option for large-scale manufacturing.
- It ensures availability as it is widely produced and easily accessible in the market.
- It aligns with environmental considerations as it is non-toxic, biodegradable, and recyclable, promoting sustainability in the industry.
Due to these factors, PTA has gained significant preference as the primary raw material for polyester production. This makes it a vital component in the manufacturing of various polyester-based products.
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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 ZCE Exchange.
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), and is also a Singapore forex broker.
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:
Monday to Friday (except public holidays)
9:00 a.m.-11:30 a.m. 1:30 p.m.-3:00 p.m. (Beijing time)
ZCE PTA Futures symbol: TA
Purified Terephthalic Acid (PTA) Supply & Demand
According to a report by Bloomberg, the global market for Purified Terephthalic Acid (PTA) is witnessing a significant surge in demand, particularly in the production of carbonated plastic bottles. This increased demand can be attributed to the inherent flexibility and durability of PTA in the manufacturing process of these bottles.
Additionally, there are also other demands in using PTA, which can drive its market growth:
Polyester Films
PTA is used as a raw material for making polyester films because of its durability and dimensional stability. The growth of the PTA market is expected to be driven by the increasing demand for Polyester films such as like photographic films, data storage tapes, and sheets.
Coating Resins
There is also a rising demand for PTA as it plays a critical role as a raw material in coating resins, making it indispensable in the paints and coatings industry.
Packaging
The food and beverage and pharmaceutical packaging industry plays a significant role in driving the increasing demand for PTA. PTA is essential for manufacturing polyester resins used in food and beverage packaging materials, as well as protecting pharmaceutical products from external factors.
As these industries grow and require reliable packaging solutions, the demand for PTA as a crucial raw material rises to meet their stringent requirements and regulations.
ZCE Purified Terephthalic Acid Price
According to Ceicdata, ZCE Purified Terephthalic Acid price was reported at 5,684.000 RMB/Ton in Jun 2023. This is an increase from the previous month's figure of 5,496.000 RMB/Ton.
Bloomberg’s report attributed the rise of PTA price largely due to the increase in crude oil prices. Crude oil serves as one of the raw materials for PTA production, and when its price rises, it directly affects the price of PTA.
Additionally, supply disruptions in North America and Europe during the first quarter of 2023 also contributed to the upward trend in PTA prices, based on a report by Chemanalyst.
PTA Future Outlook
Bloomberg predicted that the global Purified Terephthalic Acid (PTA) market size will grow up to around USD 82.04 billion by 2028. It was estimated to be worth roughly USD 57.72 billion in 2021.
The market is projected to grow at a Compound Annual Growth Rate (CAGR) of approximately 5.15% from by 2028.
However, the volatility in crude oil prices may hinder market expansion and have a negative impact on the Purified Terephthalic Acid Market in the near future. The implementation of stringent regulations on PTA is expected to drive the demand for bio-based Polyethylene Terephthalate (PET) and potentially lead to a decline in PTA demand.
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).
We provide premium customer service at an affordable cost to all our clients. 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.
