Isophthalic Acid (IPA/PIA) CAS NO.121-91-5 Review and Forecast Analysis
【Market Review】
In July, the market prices for Isophthalic Acid (IPA) remained stagnant at low levels, with a slight decrease compared to June. As of July 31, prices dropped by $17-20 per ton from the previous month. The profitability of the isophthalic acid industry continues to improve, with an average profit increase of $5-8 per ton compared to last month. The dollar prices of isophthalic acid have adjusted alongside a decline in the renminbi exchange rate. Domestically, the isophthalic acid market is steady yet slightly weak, with muted trading activity. High dollar prices are gradually losing momentum, and as the renminbi price declines, dollar prices are now referenced between $1,030 and $1,065 per ton, with transactions leaning towards the lower end.
【Market Supply】
The production load of para-phthalic acid (PIA) products is operating at 82.5% this month, a decrease of 1.34 percentage points compared to last month, with an output of 42,200 tons, which is an increase of 700 tons from the previous month.
【Demand Side】
In July, the demand for neopentyl glycol and isophthalic acid (PIA) significantly decreased across key downstream sectors. The operating load for polyester bottle chips in July was recorded at 72.11%, reflecting a month-on-month decline of 8.48 percentage points, which has led to reduced consumption of isophthalic acid. In the unsaturated resin segment, the average operating rate hovered around 27%, remaining stable compared to the previous month, reflecting only essential demand. Regarding polyester resins, a notable drop in operational levels was observed, contributing to reduced demand.
The overall demand for isophthalic acid products within key downstream sectors has diminished. The polyester bottle chip production for July is projected to be 1.2514 million tons, with an operating load of 72.11%. This month, the production status of the four major domestic manufacturers in China has fluctuated significantly, with reports of maintenance and new production coming online, primarily resulting in a decrease in polyester bottle chip output and a marked reduction in isophthalic acid consumption. In the unsaturated resin sector, the average operating rate remained stable at approximately 27%, driven by essential purchasing needs. For polyester resins, a substantial decline in operational activity this month has resulted in decreased demand for isophthalic acid, alongside a lack of enthusiasm in procurement activities.
When examining polyester bottle chips, the pricing trend for the month initially rose and then fell, with the average price showing a slight increase. At the beginning of the month, optimistic expectations due to a peak in U.S. summer crude oil demand dampened by rising futures affected PTA prices, which saw an initial surge before stabilizing with the recommencement of several PTA units, thereby increasing market supply and gradually reducing PTA prices. Consequently, cost support for bottle chips transitioned from robust to weaker throughout the month, as significant fluctuations in supply-side operations occurred. The reduction in production among mainstream units led to a decline in industry operating loads, tightening market supply and supporting price increases for bottle chips.
On the demand side, major downstream consumption sectors, such as the soft beverage industry, have maintained high operating levels; however, the current procurement sentiment has been predominantly cautious. Throughout the month, tender volumes from major downstream manufacturers declined compared to previous levels, with market trading primarily focused on fulfilling essential purchasing needs at lower prices. Overall, the pricing trend for polyester bottle chips this month has depicted an initial rise followed by a subsequent decline, with the average price experiencing a slight uptick.
【 Future Outlook of Isophthalic acid Market 】
It is anticipated that in the next three months, the Isophthalic Acid market will initially exhibit weak performance, then strengthen, followed by another downturn, predominately oscillating in nature. In August, the Isophthalic Acid market is expected to maintain a steady yet slightly firm momentum, with a reference range of $1290-$1330 per ton. Downstream industries may gradually increase their operations in anticipation of the traditional peak season of “golden September and silver October.” In September, downstream demand is expected to continue rising, leading to increased procurement activity, with anticipated price adjustments of $30-$60 per ton.
Due to planned maintenance at large domestic plants in China, there will be a contraction in supply. The bottle flake and resin industries are also expected to see a slight uptick in operational activity, contributing to a gradual improvement in demand.
