Lotte PTA Pakistan’s earnings could halve on import duty reduction on PTA

23-Jul-10

Earnings of Lotte PTA Pakistan (LOTPTA), supplier of over 60% of Pakistan’s Purified Terephthalic Acid (PTA), are expected plunge by 25-50%. The company’s protection will be reduced from US$64/ton to US$25/ton, as per The Express Tribune. Pakistan’s Economic Coordination Committee has reduced the duty on PTA from 7.5% to 3% to lower prices of raw material used to make Polyester Staple Fibre (PSF) and Polyethylene Terephthalate (PET). Prices of polyester and PET had gone up as the government had withdrawn monetisation of PTA customs duty on PET and Polyester Staple Fibre (PSF) manufacturers.