Affected by the sharp fall in international oil prices, cost-side support collapsed, and the current price of PTA fell significantly on July 20. As of July 20, the average domestic PTA spot market price was 5,050 yuan/ton, down 2.29% from the previous trading day and up 43.43% year-on-year. The main force of PTA futures closed at 4974 at 2109, down 158 points or 3.08%.
However, on July 21, there were market rumors that the Yangtze River main port was affected by a typhoon and was closed to shipping for three days. The supply in PTA Zhapu and other areas was tight, and the current price fluctuated and rose. On top of that, the slight rebound in oil prices has been fueled by costs. The main force of PTA futures closed at 2109 at 5190, up 204, or 4.09%. The average spot market price was 5,182 yuan/ton, an increase of 2.61%.
On the supply side, Fuhai Chuang’s 4.5 million tons/year PTA unit has recently reduced its load to 60-70% in mid-July 2021. Ningbo Taihua’s 1.2 million-ton PTA unit will be inspected from July 10 to 28, 2021. Luoyang Petrochemical’s PTA unit with an annual production capacity of 325,000 tons was shut down in early July 2021 and has been restarted recently, with a low operating load. The overall PTA industry operating rate is around 80%. Downstream polyester maintains a high operating load of about 88%, and the demand for PTA is relatively stable. Therefore, PTA is likely to be destocked in July.
Taken together, considering the recent tight liquidity in the PTA market, supply and demand support is acceptable. There are also concerns that the weather will cause problems in unloading goods at the port. It is expected that PTA prices will continue to fluctuate and warm in the short term, but it is still necessary to pay attention to the dynamics of the oil market. </p
