Purified terephthalic acid production capacity continues to rise, and the industry may face overcapacity

Purified terephthalic acid (PTA) is an important organic raw material, mainly used in the production of polyester bottle flakes, polyester fiber, staple fiber, and filament, of which nearly 90% is used in the production of polyester. PTA is widely used in industry, electronics, construction and light industry. my country’s PTA originated in the 1980s. Although it started late, it has developed rapidly. With the improvement of PTA production technology and equipment, my country’s PTA output has grown steadily. By 2020, my country’s PTA output will be 48.8 million tons.

Globally, PTA production capacity is mainly distributed in Asia, accounting for about 82%. Among them, India, Indonesia, Thailand, South Korea, China and other countries have higher output. China’s PTA production is relatively high, accounting for about 48% of the world’s total PTA production. my country’s PTA production capacity is high, but the company’s gross profit margin is low, which reduces the enthusiasm of domestic production companies and inhibits the release of output. In 2021, my country’s PTA operating rate is 83%, and the output is 47.7 million tons.

my country’s PTA industry is entering a stage of overcapacity, the domestic market is saturated, and domestic companies are actively exploring overseas markets. In the first quarter of 2021, my country’s PTA export volume reached about 650,000 tons, a year-on-year increase of about 240%. It can be seen from this that the competition pressure in my country’s PTA market is relatively high, and domestic companies have begun to expand overseas.

my country’s PTA market is mainly dominated by private enterprises, with a high degree of market concentration. Representative companies include Yisheng Group, Hengli Petrochemical, Fuhai Chuang, etc., among which Hengli Petrochemical accounts for the highest proportion, reaching 23%. In 2020, the total proportion of the top 10 companies in my country’s PTA production capacity will be approximately 80%.

There are currently four mainstream technologies for the production of PTA in the world, namely the patented technologies of four companies: BP of the UK, Mitsui of Japan, DuPont-ICI of the United States, and Lurgi-Eastman of Germany. my country’s PTA market is relatively mature. For the healthy development of the industry, it is necessary to continuously develop new technologies and enhance competitiveness. In the past ten years, all PTA devices put into production in my country have adopted INVISTA P8 technology, and only Dushan Energy has adopted BP technology.

According to the “2021-2025 PTA (Purified Terephthalic Acid) Industry Market In-depth Research and Investment Prospects Forecast Analysis Report” released by the Industrial Research Center shows that in 2019, my country’s PTA ushered in the second concentrated expansion period, and production capacity expanded rapidly. By the end of 2020, my country’s total PTA production capacity had reached nearly 70 million tons. The new production capacity in 2021 will be approximately 12 million tons, while the new PTA production capacity in 2022 will be 15.5 million tons. In the past three years, my country’s new PTA production capacity has reached 40 million tons, and the industry is facing a serious overcapacity problem. In the context of overcapacity, domestic mid- and small-scale enterprises and small-scale devices will be eliminated, the market has entered a period of consolidation, and market concentration continues to increase.

Industry analysts said that PTA has a wide range of applications and market demand is showing a growth trend, thus driving the development of the industry. my country is the world’s major PTA producer and consumer country. After several years of expansion, domestic PTA production capacity has faced the problem of overcapacity. Therefore, domestic companies have begun to expand into overseas markets. In 2019, my country once again ushered in a period of collective expansion of PTA production. In the three years from 2020 to 2022, it is planned to expand production capacity to 40 million tons, and market concentration is also increasing.