Purified terephthalic acid (PTA) and MELT prices have been dramatically raised by Reliance Industries Limited, India’s biggest stakeholder in the polyester value chain. The monoethylene glycol (MEG) rate, however, did not change. According to reports, Reliance’s action was made possible by the sharp increase in the price of polyester raw materials on the Chinese market.
Market reports claim that RIL set the pricing for PTA at 84.90 rupees per kilogramme (an increase of 3.70), MEG at 56.50 rupees per kilogramme (unchanged), and MELT at 89.04 rupees per kilogramme (an increase of 3.18). Beginning this coming Saturday, raw materials for polyester will be priced.
The business maintained the pricing of polyester staple fibre (PSF) at the beginning of this week at Rs.106 per kilogramme. But, according to the sources, it can also be increased for the following two weeks by $2 per kg.
The business bases its pricing for polyester raw materials on trends in Chinese prices and changes in the price of crude oil. Reliance is the dominant company in India, thus the market follows its pricing trends.
According to sources, lower crude oil prices should drive down the cost of polyester raw materials. The Chinese market, however, has seen a sharp increase, which prompted PTA and MELT to suggest that Reliance do the same.
