What Is PTA?
PTA, or Purified Terephthalic Acid, holds a pivotal role as a primary raw material in the production of polyester, a vital synthetic material with wide-ranging applications. It serves as a key component in the manufacturing process of polyester fibers, films, and resins, essential for crafting various everyday products.
According to a report by Information Technology IT, the global Purified Terephthalic Acid market is projected to experience significant growth between 2024 and 2031. This upward trend underscores the increasing demand for PTA, underscoring its indispensable function in today's consumer-driven society.
Purified Terephthalic Acid Uses
The versatility of PTA finds expression across diverse domains, from the apparel we wear and the containers that package our beverages to the textiles adorning our living spaces. As developing nations witness urbanization and the expansion of the middle class, the demand for polyester products continues to escalate. With ongoing advancements in textiles and packaging, the outlook for PTA remains promising, reinforcing its status as a prized commodity in a dynamic market milieu.
China emerges as a key driver of growth in the purified terephthalic acid market, asserting dominance in the PTA sector. The surging demand positions PTA Futures among the most actively traded contracts globally, reflecting the market's robust activity and vitality.
This article aims to delve into the ZCE’s Purified Terephthalic Acid (PTA) Futures updates in April 2024.
ZCE PTA Futures Contract
Despite PTA being widely used, finding PTA futures can be challenging. As of April 2024, 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 Updates
Purified Terephthalic Acid Price
According to CN Gold, the price of PTA futures contract was at 6038 yuan on 2nd April 2024, showing a 0.90% decline.
Purified Terephthalic Acid PTA Supply and Demand
According to a report by CN Gold, discussions in the PTA spot market remained favorable. Some mainstream suppliers offered goods for delivery in April-May, with traders dominating the offers. A few polyester factories showed interest in inquiries, resulting in a slightly stronger basis.
Transactions by suppliers were mainly observed, with mainstream transactions occurring between 5th and 15th May, and some slightly lower ones around 20th May.
In Ningbo, transactions were recorded for 25th to 30th May, with price negotiations ranging around 5950 to 6000 yuan. Transactions were reported around 10th May for April and toward the end of May around 09-40 to 09-45 for May. The mainstream spot basis is on 16th May.
On the raw material front, overnight crude oil saw a slight increase, with PX settling at 1058 US dollars per ton and PTA spot processing fees at 323 yuan per ton. Regarding installations, Hengli Petrochemical (Huizhou) PTA-2 production line is scheduled for maintenance starting this weekend, affecting a capacity of 2.5 million tons, with the restart time pending.
On the demand side, polyester production was at 91.2%, while terminal weaving operations were at 82%, showing relatively high levels of operation.
Currently, terminal demand has recovered, and profits from filament are still acceptable, providing some support on the demand side. Additionally, both PTA's own supply and maintenance of raw material PX have resulted in temporary supply constraints. With current inventory pressures expected to ease and low PTA processing fees, there is strong support on the downside.
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.
