China exported 250,600mt of purified terephthalic acid (PTA) in August, down 40,000mt from the previous month. PTA was mainly exported to Asian countries including India, Vietnam and Bangladesh, as well as Egypt and Saudi Arabia. Of these, exports to India surged to 116,200mt from less than 10,000mt in July. PTA plant turnarounds concentrated in India and as a result, end-users actively purchased for inventory replenishment.

Meanwhile, China's PTA imports in August totaled 2,900mt, increasing by 2,400mt from the previous month. But the import volumes were small. As PTA supply was ample in the domestic market, downstream polyester makers were prioritizing purchase of domestic products.

Regarding the outlook for exports and imports, since it remains difficult to navigate through the Strait of Hormuz, transport of ethylene glycol (EG) is challenging. Together with PTA, EG is a feedstock for polyester. Against the backdrop of EG shortages, operating rates of polyester facilities might decline in many countries. In this situation, views were heard that PTA demand might also retreat.

However, demand remains firm in some countries including India and Pakistan. Furthermore, China sees its PTA facilities operating at high rates in September and is expected to continue focusing on exports. Market sources expected that PTA exports would reach around 300,000mt in September.