Purified Terephthalic Acid (PTA) futures contracts staged a significant rally during Thursday’s trading session, with the benchmark contract soaring 4% to reach 4,940 yuan per metric ton. The sharp upward movement reflects tightening conditions in China’s polyester supply chain as demand shows signs of improvement.
The price surge comes amid a broader recovery in the petrochemical complex, with traders citing multiple supportive factors including firmer crude oil prices, production discipline among PTA manufacturers, and seasonal restocking activity from downstream textile producers. Market participants appear to be pricing in improved margins for the polyester sector heading into the third quarter.
Industrial Recovery Fuels Price Momentum
Analysts note the rally extends PTA’s gradual rebound from May lows, suggesting the market may have passed its weakest seasonal period. The futures curve has shifted into backwardation, indicating near-term supply tightness as plants conduct maintenance turnarounds while textile factories prepare for autumn production cycles.
The price movement carries implications for China’s textile manufacturing sector, where PTA serves as the key raw material for polyester fiber and plastic bottle production. With the 4,900 yuan level now breached, technical traders are watching whether the contract can sustain momentum to test the psychologically significant 5,000 yuan resistance level in coming sessions. Market participants will be monitoring operating rates at both PTA plants and downstream polyester facilities for confirmation of sustained demand recovery.
Related topics:
