Terephthalic Acid Price Trend and Forecast

Terephthalic Acid Regional Price Overview

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

Terephthalic Acid Price Trend for Q1 of 2025

Asia

During the first quarter of 2025, the Terephthalic Acid market in Asia witnessed relatively stable conditions, with minor upward pressure early in the period. Feedstock paraxylene prices edged higher in January, supported by firm crude oil values and global supply concerns. Despite this, demand for Terephthalic Acid from downstream polyester and textile sectors remained weak throughout the quarter.
 

Terephthalic Acid Price Chart

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The seasonal buying before the Lunar New Year in China led to a temporary rise in activity, but overall sentiment stayed subdued. Producers maintained regular production rates, and inventory levels were well managed, which prevented any significant price spikes. By March, prices had leveled off, reflecting a cautious market mood and balanced supply-demand fundamentals.

Europe

Europe saw a notable increase in Terephthalic Acid prices during Q1’25. The primary driver was the steep rise in upstream costs, especially paraxylene and propylene, due to higher crude oil prices and several key cracker shutdowns across the continent. Planned and unplanned outages in France and the Netherlands led to a tightening of supply for petrochemical inputs.

Even though demand from polyester and packaging industries remained sluggish, producers were compelled to raise prices to offset elevated input costs. The stronger US dollar also made imported resin less attractive, tightening local supply further. As February progressed, market tightness and cost-push factors combined to create a bullish price trend, despite limited downstream pull.

North America

In North America, Terephthalic Acid prices were more stable compared to other regions during Q1’25. The market was well supplied, with consistent production rates and no major disruptions. Although upstream costs did rise in line with global crude oil trends, the impact on local pricing was muted by the relatively weak demand from packaging and textile segments. Consumer spending pressures and cautious buying behaviour limited price movements. By the end of the quarter, the market remained calm, with only mild upward adjustments due to cost factors rather than strong demand.

Analyst Insight

According to Procurement Resource, Terephthalic Acid prices may face further upward pressure, especially in Europe and Asia, if feedstock costs remain high and recycled polyester demand picks up pace.
 

Terephthalic Acid Price Trend for the Second Half of 2024

Asia

The Asian terephthalic acid market struggled with declining prices throughout H2’24. July initially saw some support from monsoon-related disruptions and elevated production costs, but this quickly reversed as subdued demand and reduced orders from polyester manufacturers drove prices lower. The bearish trend intensified in Q4, with manufacturers offering substantial discounts despite already ample inventories. While some plant maintenance completions adjusted supply by November, the market remained oversupplied relative to demand, with destocking activities dominating market dynamics through December.

Europe

European terephthalic acid prices followed a volatile pattern in H2’24. July saw a brief price increase despite seasonal demand weakness, primarily driven by higher production costs. This positive momentum reversed by September as export demand weakened. The fourth quarter brought accelerated price declines, with competitive offers from manufacturers attracting buyers but ultimately driving the market lower. By December, year-end destocking became the primary market focus, further subduing demand as inventories of downstream products accumulated.

North America

The North American terephthalic acid market faced significant downward pressure throughout the second half of 2024. During Q3, prices declined steadily due to weakened demand alongside increased material availability as plants resumed normal operations. This downward momentum continued into Q4, with October seeing substantial price drops despite active trading volumes. A brief stabilization occurred in November due to labor strikes disrupting supply chains, but December brought further weakness as buyers engaged in year-end destocking activities amid accumulating inventories.

Analyst Insight

According to Procurement Resource, the Terephthalic Acid market will face continued challenges entering 2025, with potential stabilization dependent on inventory normalization and seasonal demand patterns.
 

Terephthalic Acid Price Trend for the First Half of 2024

Asia

In Asia, the Chinese terephthalic acid market exhibited an upward price trend in the first quarter of 2024. Market conditions were influenced by rising upstream ethylene glycol prices due to equipment maintenance and supply constraints, alongside fluctuations in crude oil prices. Additionally, the decreased operating rates of terephthalic acid factories during the maintenance season narrowed the supply side.

On the demand side, increased inventory consumption among downstream packaging factories supported prices. However, in the second quarter, the Chinese terephthalic acid market faced a notable downtrend, primarily due to oversupply, which caused prices to dip. Producers struggled to offload high inventory levels, despite production cuts and discounts. The excess supply, coupled with cautious purchasing behavior among market participants, led to a pressurized market environment. While a slight rebound was observed in June due to heightened demand from the food and beverage packaging sector, overall, the market remained under strain.

Europe

In Europe, the terephthalic acid market experienced an upward price trend during the first quarter, supported by increased downstream activity in countries like Germany. Elevated feedstock prices, supply chain disruptions, and logistical challenges, exacerbated by farmer protests and changes in maritime routes, further pressured the market. This resulted in higher production costs and increased competition from imports, intensifying the challenges faced by European producers.

In the second quarter, terephthalic acid prices remained stable, primarily due to consistent demand from downstream industries, especially packaging. The stagnation in feedstock para-xylene prices also contributed to the market's stability. Additionally, the shift of end-users toward domestic terephthalic acid production, coupled with minimal stock levels in the PET resin market, maintained price equilibrium throughout the quarter.

North America

In North America, terephthalic acid prices followed a mixed trend. The first quarter saw significant price increases, driven by global freight disruptions, including issues in the Red Sea, Suez Canal, and Panama Canal. These logistical complications reduced container availability and delayed shipments, impacting the region’s terephthalic acid supply and driving prices higher. As the second quarter progressed, crude oil price fluctuations initially caused terephthalic acid prices to rise, but an economic downturn and oversupply of naphtha toward the quarter’s end led to price stabilization. Additionally, rising freight charges and extended lead times reduced overseas interest in terephthalic acid imports, further contributing to the moderation of prices by the end of the second quarter.

Analyst Insight

According to Procurement Resource, the price trend of Terephthalic Acid is expected to incline further in the quarters ahead with ample support from the downstream and feedstock industries.
 

Terephthalic Acid Price Trend for the Second Half of 2023

Asia

During the H2 of 2023, terephthalic acid prices generally remained at the lower end of the pricing spectrum. In China, there was a slight decline in terephthalic acid prices, with monthly averages decreasing from October to December, while the third quarter exhibited moderate stability.

Terephthalic acid finds its primary use in the PET plastic industry, with consistent demand stemming from downstream polyester and PET sectors. As a result, price trends for terephthalic acid remained relatively stable and within close ranges due to steady demand from these industries.

Europe

Throughout the H2 of 2023, there was a notable association between the pricing movements of xylene, which is used as a feedstock material in terephthalic acid production, and the European terephthalic acid price trend. The prices of xylene and crude oil dropped during the Q3 and Q4 of 2023, and so did the price of terephthalic acid.

The market also showcased the ill consequences of negative consumer interest and the rising pressure of inflation. In addition to this, the loss of exports based on the disruptions in the Red Sea route due to the ongoing Israel-Hamas crisis led to an unexpected rise in inventories and a decline in terephthalic acid prices.

North America

The price trends for terephthalic acid in the US domestic market likewise mirrored the slowdown in the European market. The largest influence on regional prices came from the sharp drop in the price of crude oil in the domestic American market. Additionally, due to the drought-like conditions in the Panama Canal during the end months of the year, the market registered a significant decline in the number of overseas orders, which further accelerated the downfall of the terephthalic market.

Analyst Insight

According to Procurement Resource, the price trend of Terephthalic Acid is expected to be based on the limited number of queries from the downstream industries and the bleak outlook of consumers.
 

Terephthalic Acid Price Trend for the First Half of 2023

Asia

Terephthalic Acid is an important chemical widely used in the plastics and polymers manufacturing industries. It has a crucial role in PET (Polyethylene Terephthalate) manufacturing. So, the price trend depend heavily on the downstream demands from these sectors and the feedstock materials like p-xylene. During H1’23, the Terephthalic Acid prices fluctuated for the entire period.

In the first quarter, the product offtakes were bearish; however, occasional supply constraints compensated for the capital loss. A surge in demand was noticed at the shift of quarters since the summer weather called for high demands in the PET packaging bottles sector. Though the market appeared very subsided in the latter half of the second quarter.

Europe

The European Terephthalic Acid market outlook was mostly positive throughout the said period. During the first three months, demands were slow; the upstream cost support was high because of high feedstock para xylene prices and expensive production costs. As the quarters changed, the demands rose, and a bullish price trend was observed in the first half of the second quarter, significantly because of the packaging industry. Nonetheless, the latter half of the second quarter was relatively steady and subsided since the demands depreciated substantially.

North America

The North American Terephthalic Acid market was under the influence of high inflation for most of the discussed period. The price trend ran high because of the high production costs. It was in the latter half of Q2’23 that the oversupply started dominating over poor demands, and the price trend shifted. Overall, a mixed market outlook was observed.

Analyst Insight

According to Procurement Resource, the projections look positive for the Terephthalic Acid market sector. A good demand outlook suggests a good market run in the coming months.
 

Terephthalic Acid Price Trend for the Second Half of 2022

Asia

The Asia-Pacific market witnessed a decline in the prices of terephthalic acid as the demand from end-user polymer industries declined. The manufacturers as a result were forced to reduce their profit margins and overall manufacturing declined in the region. These reasons for the decline persisted in the fourth quarter also. Weak market sentiments, sluggish demand, and a decrease in output led to a declining trajectory in the price trend for terephthalic acid.

Europe

The feedstock prices and oversupply of the product drove the prices of terephthalic acid in a negative direction in the said period. The prices were further affected by the rising crude oil prices due to the imposed sanctions on Russian supply and the persistent energy crises in the region. The shadows of long-feared recession and rising inflation led to uncertainties in the market and thus, in turn, negatively impacted the prices of terephthalic acid in the European region.

North America

The market for terephthalic acid was ruled by low demand, an increase in inventories level, and weak consumer confidence due to the possibility of a recession. Thus, a significant decline was observed in the third and fourth quarters of 2022. In addition to this, the problem of oversupply, falling crude oil prices, and build-up pressure from rising inventories due to a decline in export deteriorated the market conditions. Thus, the price trend for terephthalic acid declined consistently in the North American region.

Analyst Insight

According to Procurement Resource, the price trend for Terephthalic Acid are expected to decline in the upcoming months considering the fluctuating cost of crude oil, weak market sentiments, and low demand from the end-user industries.
 

Terephthalic Acid Price Trend For the First Half of 2022

The economic and political downturn which unfolded in the aftermath of the Russia-Ukraine war exposed the market’s vulnerability. With the European embargo on Russian oil and western sanctions against Russian exports, crude oil prices surged which negatively impacted the petrochemical industry. The main feedstock for terephthalic acid(TPA) being p-xylene, the prices of TPA surged globally.

The strong downstream demand for polyester and polyethene terephthalate further supported the high prices for TPA. The prices of feedstock p-xylene averaged 1575 USD/MT in Europe while the USA averaged 1458 USD/MT.

The prices of terephthalic acid averaged 6400-6500 RMB/MT in the Chinese domestic market during the said period. Hence, the strong downstream support amid raised feedstock quotation caused the price trend for terephthalic acid to surge globally.

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