Crude oil and Purified terephthalic acid

Crude oil is a raw material for purified terephthalic acid; their prices have moved together.

Crude oil (energy) and Purified terephthalic acid (chemical): 2 relationships.

How they are linked

1. Feedstock

Physical flow · Direct · Crude oil → Purified terephthalic acid

Purified terephthalic acid is made from crude oil: it is one of the raw materials its production routes start from.

2. Price link: feedstock cost

Cost and price · Strong · Both ways

Oil sets the cost of naphtha and so of paraxylene, which flows through to PTA. The tie is moderate, 0.20 monthly and 0.67 yearly, as Chinese capacity additions often decide PTA margins.

• 0.20 monthly change correlation
• 0.67 12-month change correlation
• 0.18 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.