Terephthalic Acid Price Trend and Forecast

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 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 Price Chart

Please Login or Subscribe to Access the Terephthalic Acid Price Chart Data
 

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.

Procurement Resource provides latest prices of Terephthalic 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.