The domestic PTA spot market has stopped falling and stabilized, showing a slight upward trend last week. As of August 27, the average market price was 5,010 yuan/ton, an increase of 0.92% from the beginning of the week and a year-on-year increase of 39.48%. The trend of futures prices is basically the same. As of August 27, the settlement price of the main contract was 5,000 yuan/ton. On the supply side, some PTA units are planned to restart next week, including 1.2 million tons of Hailun Petrochemical, 1.5 million tons of Honggang Petrochemical, and 1.2 million tons of Zhongtai Chemical. The current industry operating rate is over 79%, and the device load is expected to further increase. If the supply of September contract goods may be provided at regular proportions, the tight spot situation in East China is expected to be alleviated.
Recent domestic PTA device change statistics:
International oil prices rose last week, with the current settlement price of the main contract in the U.S. WTI crude oil futures market at $67.42 per barrel. Crude oil rose for three consecutive trading days at the beginning of the week, equaling last week’s decline. The main influencing factors were the American Petroleum Institute (API) data showing that U.S. crude oil and refined oil inventories fell last week, and the U.S. Energy Information Administration (EIA) on Wednesday Routinely released inventory data showed that crude oil inventories fell for the third consecutive week, pushing oil prices to continue to rise. However, the spread of the epidemic also put pressure on crude oil prices, and prices fell back on Thursday. Taken together, it has formed a certain positive support for the cost side of PTA.
However, the overall production and sales of downstream polyester are flat, and the demand for PTA has weakened, which has inhibited the rebound of the PTA market. The current operating rate of the polyester industry is around 83%. After the load of mainstream factories dropped, there was little enthusiasm for spot purchases of PTA. As a result, the supply of PTA was sufficient and inventory began to accumulate. Textile terminal orders are insufficient. Recent orders for various autumn and winter clothing and home textile fabrics lack bright spots. Some factories have shut down to sell inventory, and the market trading atmosphere has become increasingly thin.
New PTA devices are being put into operation one after another, and the increase in device operating rates will increase the supply side. In the short term, it is difficult for the terminal weaving market to improve significantly. Polyester factories continue to reduce production, and it is expected that PTA will gradually enter the inventory. Superimposed on the volatile and weakening trend of crude oil stocks, the PTA market has many negative effects. Prices are more likely to weaken this week. We still need to pay attention to oil prices and the progress of polyester production cuts. </p
