A long-term shutdown of 7.66 million tons of PTA production capacity in 2021
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In recent years, the capacity of PTA plants put into operation in our country has been generally above 2 million tons. Meanwhile, the introduction of a large number of new plants means that overcapacity in the PTA sector will further increase in the future, which also determines that its prices will remain around the cost level in the long term. Compared with the newly commissioned integrated upstream and downstream plants, the existing small-scale plants with a capacity of around 1 million tons will gradually lose their competitiveness. Under the pressure of overcapacity, some of these outdated small plants may be shut down, and China’s PTA industry could enter a new period of consolidation. Among the many competitors, leading firms enjoy a distinct advantage.
The production capacity of Hengli Guangda’s Dalian plant already exceeds 10 million tons, and they are currently building a project in Huizhou as well – how can there not be excess capacity?