China's domestic PTA spot market price rebounded in the past month. As of January 12, PTA spot market price was 8,800 Yuan / ton, up 4.14 percent from 8,450 Yuan / ton on December 12.
PX price too continues to rise. Asian PX price is in the range of US $1589.5-1590.5 / ton (CFR China/Taiwan). Downstream polyester market is releasing demand in a concentrative pattern. Some PTA producers hold zero inventories, so their offers are slightly higher.
Currently main domestic PTA producers, such as Xianglu Petrochemical, Far East Petrochemical and Yi Sheng Petrochemical have set their December settlement price at 8,700 Yuan / ton, and January listing price at 8,800 Yuan / ton.
Asian PTA capacity was 43.7 million tons in 2011. According to ICIS data, PTA production capacity in Asia will increase by 26 percent in 2012; all new capacity will be concentrated in China.
Asian PTA producers will face pressures of excess capacity in 2012. Current operating rate of PTA plants is about 80-85 percent, the rate may go further lower in the future.