Short supply of PTA likely to inflate prices in Indian markets – 18 Apr 2014

PTA prices are likely to gain in Indian markets if stocks available with traders dwindle considerably on account of domestic supplies contracting due to shut-down of Indian Oil Corporation's plant at Panipat in Haryana. According to market inputs received, stocks of PTA in markets of the country are likely to deplete as the prevailing demand for the chemical is strong. A Delhi-based trader told Indianpetrochem," Stocks of PTA have been reducing rapidly as there are no supplies from domestic producers, and the shut-down of Indian Oil's plant has compounded the situation."  He further said," PTA prices are likely to go up due to short-supply." 
 

Indian Oil's PTA plant has idled its plant since mid-April 2014, and restart is expected tentatively on May 14, 2014.
 

The current ex-work price of PTA, of Indian Oil Corporation, is at Rs 61,100 per metric tonne, while, the market price is at around Rs 73,000 per metric tonne.
 

Also, the current PTA prices in Far East Asia and South East Asia are at around USD 895 per metric tonne and USD 900 per metric tonne respectively.