Production margins of chemical Purified Terephthalic Acid (PTA) fell to 18-month low of $235 per ton, down 40 per cent from an all-time high of $366 per ton seen at the start of 2011.
With cotton prices declining during March to June 2011 after expected improvement in supply side dynamics, its close substitute PSF prices have also followed suit, according to a Topline Securities research note. Subsequently, prices for PSF’s primary raw material PTA also declined in the outgoing quarter, adds the note. PTA prices fell by 16% to an average of $1,275 per ton on a quarterly basis.
The double-digit decline in primary margins would take a toll on Lotte Pakistan PTA, the sole maker of the chemical, adds the note.
Published in The Express Tribune, July 5th, 2011.
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