Purified Isophthalic Acid (PIA) Price Trend and Forecast

Purified Isophthalic Acid (PIA) Regional Price Overview

Get the latest insights on price movement and trend analysis of Purified Isophthalic Acid (PIA) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Purified Isophthalic Acid Price Trend for the First Half of 2024

Asia

In the Asia-Pacific region, purified isophthalic acid prices saw a significant upward trend in the first quarter of 2024. This surge was primarily due to supply disruptions caused by the shutdown of key toluene plants in major exporting provinces, exacerbated by the Chinese Lunar New Year festivities, which further tightened the market. The outcomes of the OPEC+ production policy meeting also contributed to market tensions, as production cuts were less than anticipated. This combination of supply shortages and increased demand led to a sharp rise in prices across the region.
 

Purified Isophthalic Acid (PIA) Price Chart

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Moving into the second quarter, the Asian purified isophthalic acid market remained buoyant. Tight supply conditions continued to support prices, and re-stocking activities in China ahead of the festival season provided additional momentum. The rising cost of feedstock xylene, driven by fluctuating crude oil market sentiments, further increased production costs, pushing prices higher. Despite global trade disruptions and escalating transportation charges, both domestic and international inquiries for purified isophthalic acid derivatives remained strong, reinforcing the market's upward trajectory.

Europe

In Europe, purified isophthalic acid prices also experienced an increase in the first quarter, driven by heightened demand from the downstream plasticizers market and reduced inventory levels due to increased consumption. However, supply chain disruptions, such as farmer protests and a rail strike in Germany, created uncertainties in the market. Rising feedstock prices and increasing production costs, compounded by supply shortages, led to higher purified isophthalic acid prices. As the quarter progressed, increased trading activities, particularly from Germany to overseas markets, further supported the price trend.

However, in the second quarter, the European purified isophthalic acid market did not share the same positive outlook as Asia. Prices fluctuated and ultimately settled at the lower end of the spectrum. Weak cost support from feedstock industries and muted demand from downstream sectors, especially the PET resin market, contributed to this subdued pricing trend. Despite a decline in Asian imports, the European market faced challenges in balancing supply and demand, leading to a lackluster performance.

North America

In North America, purified isophthalic acid prices saw a significant rise in the first quarter, influenced by sustained demand and higher costs for toluene and phthalic anhydride. Geopolitical tensions and potential US military involvement in the Middle East, alongside shipping route disruptions, further complicated the market. Supply chain constraints, particularly in raw materials, also played a role, with major toluene manufacturers operating under force majeure due to severe weather conditions. These factors provided strong cost support to the purified isophthalic acid market in the region.

The upward trend continued into the second quarter, resonating with the Asian market's dynamics. Shortages in import supply, coupled with rising ocean freight charges and longer lead times, pushed prices higher. Although demand from downstream PET industries was modest, the ongoing supply challenges and rising feedstock costs were sufficient to drive purified isophthalic acid prices upward throughout the quarter.

Analyst Insight

According to Procurement Resource, the price of Purified Isophthalic Acid is expected to continue its northwards trajectory under ample support from the feedstock as well as downstream industries.
 

Purified Isophthalic Acid (PIA) Price Trend for the Second Half of 2023
 
Asia

Purified isophthalic acid (PIA) prices showcased an underwhelming performance during the second half of the year 2023. Quarter three began with lackluster demands from the downstream consuming sectors. The inventories were already stacked and overflowing with unused products. Still the feedstock paraxylene prices and the running oil costs were providing some upstream cost support. But as the crude oil prices dipped in the following quarter, the purified isophthalic acid prices also dived down.

The US Dollar also strengthened in the international market, which ticked inflation in several Asian markets. Overall, a declining trend was observed for purified isophthalic acid during the said time period.

Europe

The situation in the European purified isophthalic acid market was not very different from the Asian market, as the prices were found to be struggling here as well. Quarter three saw a considerable loss in customer interest, especially from the PET bottle industries. This started exerting a reverse pressure on inventories.

The manufacturers even reduced production to balance the parity between the supply and demand dynamics. So, the market rates maintained a downward trajectory. In the fourth quarter, other geopolitical disturbances also became pivotal in determining commodity prices. After the Russian war, the supply chains, especially for Europe, took another hit as the Israel and Hamas conflict erupted. Overall, a dipping trend was witnessed for PIA during H2’23.

North America

The market situation for PIA was not much different in the North American markets than in its Asian and European counterparts. The prices were observed to be sliding down here as well. Dull downstream demands were fundamentally the reason the performance remained unsatisfactory for the most part. Inventories were exhausted since the beginning of the third quarter. In the fourth quarter, a supply chain crisis was observed as the drought prolonged in the Panama Canal, hindering the passage of vessels. Still, the existing stocks could handle the existing demands.

Analyst Insight

According to Procurement Resource, Purified Isophthalic Acid (PIA) trends will play out differently in different regions subject to regional dynamics. An expected rise in crude oil prices will have some impact as well.
 

Purified Isophthalic Acid Price Trend for the First Half of 2023

Asia

The prices of purified isophthalic acid inclined in the first quarter of 2023 with support from the upstream industries. The equation of supply and demand was also well balanced during this time, which further supported the rise in prices of purified isophthalic acid.

In the second quarter, however, the trend declined as packaging industries showed low interest, and the feedstock market also performed poorly. Further, the fall in the economic conditions of the Asian countries led to a significant decline in the interest of buyers in this sector, causing the prices of purified isophthalic acid to follow a southward trajectory.

Europe

The European markets witnessed a high influx of imports from Asian countries, which led to a rise in the level of inventories only as the demand for purified isophthalic acid remained subdued throughout the first and second quarters of 2023. In the second quarter, weak market sentiments and the rise in inflation due to the poor economic condition of European countries played their part. The cost of production rose side by side with inflation and bank interest rates, which proved to be a challenge for the price trend of purified isophthalic acid.

North America

As observed in Europe, the North American markets of purified isophthalic acid also suffered from the influx of cheap imports from Asian markets. The situation became much more dire when several manufacturing units had to undergo routine maintenance shutdowns, resulting in disruption in the supply chains in the first quarter of 2023.

In the second quarter, the prices declined more steeply. The major contributing factor to this poor market sentiment of purified isophthalic acid was inconsistency in the cost of transportation, low cost of production, high fluctuations in the feedstock market, and rising level of inventories.

Analyst Insight

According to Procurement Resource, the price trend of Purified Isophthalic Acid is expected to continue its southward trajectory as the demand from the downstream sectors seems to be suffering from uneven market activities.

Procurement Resource provides latest prices of Purified isophthalic acid. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.