PTA exports continue to rise in Jan-Jun 2022

According to Customs statistics, the import volume of PTA in June 2022 was 42kt, an increase of 184% month-on-month; the export volume was 392.3kt, a month-on-month increase of 26%. The increase in PTA exports in June was partly due to the impact of shipping schedules. From January to June 2022, the cumulative import of PTA was 9.3kt, a year-on-year decrease of 71%, and the export was 2.06 million tons, a year-on-year increase of 54%.

From January to June, the main increase of exports came from India, Turkey, Oman, Vietnam and Egypt, but Saudi Arabia and Russia showed a slight decline.

PTA export volume in 2021 and 2022 

 Unit: KT

In the first half of the year, the overhaul schedule of PTA units were not frequent in overseas market, but there was also no new PTA units into operation. Therefore, the increase in demand mainly relied on PTA imports. Due to the different market fundamentals, PTA margin in China domestic market was about 300-600yuan/mt and about $100/mt in export market. Therefore suppliers and traders were actively involved in the export trade.

In terms of export origin, Liaoning, Jiangsu, Guangdong and Fujian have a relatively large proportion of exports, respectively 42%, 17%, 13%, and 11% as some major PTA producers located in these regions singed long-term contracts with overseas buyers. Exports from Shanghai and Shandong account for around 7-8% of the total. There are no PTA units there and the PTA cargoes were exported mostly by the trading houses through negotiation in spot market.

In the second half of the year, China domestic PTA market still faces oversupply pressure, especially in the fourth quarter when large amount of new PTA capacities are scheduled to start. China's PTA still has a price advantage in the world. However, the overseas demand may weaken in the later period.  The polyester polymerization rate in India began to decline from May and the demand for imports gradually reduced with less bids. In Europe, due to the increased cost pressure, Indorama’s 1.11 million tons of PET bottle chip units in Spain, the Netherlands, Poland and Lithuania began to cut production.

Therefore, although China's PTA price advantage still exists, with the weakening of overseas demand, the import volume of PTA may show a decline in the later period.