Impact of tense situation in Taiwan on PTA industry

The total PTA capacity in Taiwan is 4.35 million tons (excluding the 200,000-ton IPA plant of FCFC), of which 400,000 tons PTA units have been idled for long term, accounting for 9% of the total capacity, and the effective capacity is 3.95 million tons. FCFC's 550kt/year and 700kt/year PTA units are in normal operation, while OPTC and CAPCO’s PTA units have cut the operating rate or stopped production recently, so the PTA plant operating rate in Taiwan has dropped to 60-70%.

PTA capacity expansion in Taiwan is slow as PTA capacity in the region gradually became excessive after the startup of 1.5 million tons/year PTA unit of OPTC in 2017. The export volume increased from around 260,000 tons in 2016 to around 1.25 million tons in 2021.

According to the statistics of Taiwan, From January to June, the total PTA imports of Taiwan, China was 51,800 tons, and the total export volume was 581,500 tons.

Taiwan's main export destinations are Vietnam and India, accounting for 41% and 35% of the export volume, followed by Egypt, Oman, Malaysia and India, which account for 3-10% respectively. In recent years, due to the rapid expansion of China’s PTA capacity, PTA exports to Chinese mainland reduced with 6,900 tons in the first half of this year, accounting for 1.2%.

According to the statistics of China Customs, from January to June 2022, the total PTA imports from Taiwan, China was 5,500 tons, accounting for 59.2% of the total import volume. 

Although the proportion seems to be relatively high, the absolute amount is very small. In the short term, the regional demand in Taiwan is sluggish and the overseas demand is shrinking, which may affect the operation of some PTA units in the later period.