22 May 2019
Posted in Press Release
India will become net exporter of Purified Terephthalic Acid over next four years, says GlobalData
India is set to become a net exporter of Purified Terephthalic Acid (PTA) over the next four years as exports of PTA are expected to increase at a compound annual growth rate (CAGR) of 48.9% from 0.212 million tonnes per annum (mtpa) in 2017 to 1.552 mtpa in 2022, according to GlobalData, a leading data and analytics company.
The company’s report: ‘Purified Terephthalic Acid (PTA) Industry Outlook in India to 2022 – Market Size, Company Share, Price Trends, Capacity Forecasts of All Active and Planned Plants’ reveals that three upcoming projects, Nayara Energy Vadinar Purified Terephthalic Acid (PTA) Plant, Indian Oil Corporation Paradip Purified Terephthalic Acid (PTA) Plant and Indian Oil Corporation Panipat Purified Terephthalic Acid (PTA) Plant with a capacity of 2.400 mtpa, 1.200 mtpa and 0.147 mtpa, respectively are expected to commence their production by 2022.
The largest PTA plants in India in 2017 were ‘JBF Industries Mangalore Purified Terephthalic Acid (PTA) Plant’, ‘Reliance Industries Dahej Purified Terephthalic Acid (PTA) Plant 1’, ‘Reliance Industries Dahej Purified Terephthalic Acid (PTA) Plant 2’, ‘Mitsubishi PTA India Corporation Haldia Purified Terephthalic Acid (PTA) Plant 2’ and ‘Reliance Industries Hazira Purified Terephthalic Acid (PTA) Plant 3’.
Vinuthna Bidar, Oil & Gas Analyst at GlobalData, says: “The new PTA capacity additions coming on stream by 2022 will turn India from net importer to a net exporter. Also, the increase in domestic demand of PTA is majorly dependent on growth and demand of Polyester products.”
The major companies in the country are ‘Reliance Industries Ltd’, ‘Mitsubishi Chemical Holdings Corp’, ‘Indian Oil Corp Ltd and Mitsubishi Corp’. In 2017, these companies collectively accounted for 90.6% of the PTA capacity in India.
The main sectors that consume PTA in India are Polyester Fibre and Polyethylene Terephthalate (PET). In 2017, these sectors accounted for almost 88.9% of the PTA demand in India.
The average price of PTA is expected to grow at a CAGR of 2.3% from US$658.6/tonne in 2017 to US$737.0/tonne in 2022.
During 2008 to 2017, India was a net importer of PTA. According to GlobalData forecasts, imports as percentage of demand is expected to decrease from 9.0% in 2017 to 0.6% in 2022.