Asian PTA producers under pressure as India laps up Chinese supply

Asian purified terephthalic acid producers are facing increased competition in the lucrative Indian market due to cheaper Chinese imports, according to trade sources.

India's demand for PTA remains robust, with the country's growing buying interest increasingly attracting producers from China as well as regions such as Taiwan, Thailand, Indonesia and South Korea.

Slower domestic demand in China has led to stronger outflows, with exports rising 1% month over month to 361,934 metric tons in December, following a 61% jump in November, according to China Customs Statistics. China exported 132,687 mt of PTA to India in December, up from 69,802 mt in November, the data show.

India's total PTA imports rose 9.1% year over year to 1.95 million mt during January-November 2025, according to the latest data released by the country's Ministry of Commerce and Industry.

A buyer in India said Chinese PTA flows to India are expected to increase, especially after India revoked a quality-control order in late 2025 that has allowed Chinese products to be freely available.

"February, March and April [imports to India are expected to] be in big volumes. Now things are getting aligned post BIS [removal], so arrival volumes will be high," the buyer said.

A recent rise in spot paraxylene and PTA prices in China had been expected to push Chinese PTA offers higher as domestic margins improved; however, this has yet to be reflected in offers, according to the buyer.

Regarding trade terms, buyers in India have chosen to purchase PTA on an FOB China basis, with a premium linked to the daily Platts PX CFR Taiwan/China price.

Some February-loading PTA cargoes from China were offered at about PX CFR Taiwan/China plus a spread of $45-$46/mt for larger cargo volumes, while smaller volumes of Chinese PTA were being offered at around PX plus $50-$55/mt, according to a second Indian buyer.

Breakbulk shipping freight rates are further enticing Indian buyers by making the landed cost of Chinese PTA on the west coast of India affordable, the first buyer said.

Regional competition

Trade sources noted that, outside of China, sellers from Taiwan, South Korea, Indonesia, and Thailand have been vying for Indian demand amid competitive Chinese offers.

"We have not offered in the Indian market [recently]. It is now being dominated by the Chinese; why would we bother competing against them?" a producer outside China said.

To maintain profitability, a PX-linked price with a spread of at least $100/mt is necessary, according to the producer. However, achieving such prices is challenging, as offers at PX plus around $70/mt are being rejected by Indian buyers, the producer said.

Offer levels from Taiwan have also declined, although breakbulk freight rates are almost the same as those for cargoes loaded in China, according to the first buyer. However, he added that offers from Thailand have not decreased significantly.

A third Indian buyer said, "Most customers are looking for breakbulk shipments in India right now."

A fourth buyer cited freight as a key element that could make offers from producers outside China competitive.

Container freight from Taiwan and Indonesia for January and February loading cargoes is about $1/mt cheaper than container cargoes loading from China, according to the fourth buyer. This rate advantage may continue until the start of the Lunar New Year, the buyer said.

Domestic pressure

Trade sources expect pressure on domestic Indian PTA producers to increase as Chinese imports rise.

"There is ample pressure on domestic producers [now]," the first buyer said.

India's domestic production is set to grow over the next few years, with state-owned GAIL (India) Ltd. planning to start operations at its 1.25 million mt/y PTA plant at its wholly owned subsidiary, GAIL Mangalore Petrochemicals Ltd.

A domestic producer said that while their 2026 supply contracts have been locked in, the availability of Chinese imports is making sales increasingly difficult.

"Volumes [for the term are] settled. The issue is margins, [which] need to match China," the producer said.

Platts, part of S&P Global Energy, assessed PTA at $649/mt FOB China and $687/mt CFR India on Jan. 21, both unchanged day over day.