World Analysis – PTA, DMT & Isophthalic Acid

Duration: Long-term outlook to 2050

The global terephthalic acid (TPA, or PTA in its purified form) and dimethyl terephthalate (DMT) markets are primarily the upstream raw materials for the downstream polyethylene terephthalate (commonly referred to as PET or polyester) fiber market (the most significant demand segment) and PET packaging resin markets. Polyester fibers account for almost two-thirds of total polyester production and resulting PTA demand, while the remainder is driven mainly by the packaging segment, where PET bottle resin represents a significant share. The collection of and demand for recycled polyester bottles has grown enormously. Globally, most of the collected recycle is used in the fiber industry as a low-cost substitute for virgin resin/raw materials in staple fiber – primarily fiberfill applications. There has also been substantial growth in using recycled PET packaging resin for food and beverage packaging in the West. Recycled PET (rPET) packaging resin consumed in fiber production typically has less stringent quality requirements than packaging, especially for beverages, and, therefore, requires less cleaning and is less costly than virgin materials.

The developments in PTA technology, which introduced scale and competitive costs to the product, have been instrumental in the phenomenal growth of not just PTA, but of the polyester industry as a whole. However, the recent decade will be remembered for mainland China’s complete industry domination and what we have defined as “The Rise of the Megaton” (= assets with 1 million metric tons or more capacity). Globally, most polyester is now being made from PTA. With the decline in the availability of DMT, consumers have been shifting towards PTA wherever possible. PTA has lower capital costs and better manufacturing economics and, therefore, is the preferred feedstock for nearly all terephthalate applications.

Duration: Long-term outlook to 2050

The World Analysis – PTA/DMT and Isophthalic Acid provides a comprehensive analysis and key insights into critical market developments as they shape the future outlook for the global PTA and DMT markets.

The following reports, data files, analytical tools and visualization modules are available online and can be downloaded from our website:

• Direct Access to the Subject Matter Experts
• In-depth exploration of present market strategic insights, recognition of key challenges, and presentation of our experts’ forecasts and analysis
• Explanatory Notes detailing data sources, methodologies, unit and conversion factors, and World Analysis deliverables.
• Energy and Economy assumptions
• Price, cost and margin base assumptions forecast and sensitivities analysis, including price assessment methodology, including price definitions across all regions.
• Excel data files with standard supply/demand graphics and price forecasts extended to 2050, trade grids with country and regional trade flows Data appendix (Excel) with supply/demand, capacity and trade tables.
• An online dashboard visualization of capacity, supply/demand, trade grids, and price, cost and margin forecasts
• Supply/demand and capacity database access via data browser
• Data Appendix (Excel) with supply/demand and capacity tables
• Capacity by company/shareholder, capacity integration, top producer/consumer and surplus/deficit capacity ranking, and ownership/subsidiary information

In addition to the main products, PTA and DMT, capacity is provided for the following products:

• Polyester polycondensation
• Purified isophthalic acid (PIA)
• Phthalic anhydride (PAN)

This World Analysis contains detailed information on capacities, production, demand, and trade for all significant producing and consuming countries and regions. Although data gathering is essential for understanding history and potential future trends, we believe that the interpretation and analysis of the data is the most valuable information to our clients.

Duration: Long-term outlook to 2050