Japan PTA production capacity to zero overnight! Global supply chain change! Can China fill 70% of the global market gap?

On February 24, Toray announced that it will stop producing terephthalic acid (PTA) in Japan within 2026, a decision that will bring the domestic PTA capacity to zero. The suspension of Toray is not only the result of the company's own strategic adjustment, but also reflects the profound changes in the global PTA industry pattern. In this context, China, as the world's largest PTA production and consumer, its industrial status and future trend are concerned.

The rise of PTA in China

In recent years, our country PTA industry has achieved rapid development. By the end of 2024, China's PTA capacity has exceeded 85 million tons, accounting for 70% of the world's total capacity. This achievement is due to the country's continuous investment in technology research and development and industrial upgrading. For example, the PTA equipment put into production in China in the past ten years mostly uses the internationally advanced Invista P8 technology, which makes the PTA industry in China closely follow the international advanced level in technology. In addition, China's PTA industry has formed a market pattern dominated by industry giants such as Yisheng and Hengli, and these enterprises have significant advantages in technology research and development, production management and market development.

Opportunities for China in the face of global change

From the downstream industry point of view, PTA is the main raw material of polyester fiber, polyester bottle sheet and polyester film products, widely used in textile, packaging, electronics and other fields. As the world's largest PTA producer and consumer, China's market dynamics have a decisive impact on the global PTA price. The shutdown of Toray may lead to fluctuations in global PTA prices, but the adequacy of PTA production capacity in China will provide a strong guarantee for downstream enterprises and reduce the impact of external shocks.

Chinese enterprises should seize the opportunity of changes in the global market pattern, actively expand overseas markets, and enhance the international market share of our PTA products. Secondly, with the progress of technology and industrial upgrading, China's PTA industry is expected to develop in the direction of higher quality and higher efficiency.

However, our PTA industry is also facing many challenges. On the one hand, the volatility of international oil prices and the uncertainty of raw material prices have increased the operational risks of the industry. On the other hand, with the increasingly strict environmental protection policies, the PTA industry needs to further strengthen environmental protection investment and reduce pollutant emissions. In addition, with the expansion of global production capacity, market competition has intensified and the risk of overcapacity has gradually emerged.

In the context of the Toray shutdown event, the role of our government and industry associations is particularly important. The government should strengthen the planning and guidance of the PTA industry, avoid overcapacity and disorderly competition, and promote the high-quality development of the industry. Industry associations need to play an active role in technology research and development, standard formulation and market norms to enhance the overall competitiveness of China's PTA industry.

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