PTA Late Diving Short Line To Maintain Weakness

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Xiaobian network to introduce the middle of Shanghai: PTA late diving short line to maintain a weak.

On August 27th, it was reported that the largest PX manufacturer in Asia plans to increase its operating rate. On Tuesday, Asian PX prices fell by 1 US dollars / ton to 1293.50 US dollars / ton FOB Korea and 1316.50 US dollars / ton CFR Taiwan / China compared with the previous trading day.

Recently, spot trading has become more and more weak, and the weakness of the fundamentals has been further aggravated. Today's 1501 contract continues to decline, and it continues to fall, closing at 6720 yuan / ton, down 1.06% compared with the previous trading day's settlement price, with a turnover of 874974 hands and an increase of 41506 to 765194 hands.

Spot market, early PTA internal market

Weak, the offer was near 7200-7250 yuan / ton, and the counter offer continued to drop to 7100 yuan / ton or slightly higher than that. It discussed 7150 yuan / ton up and down; the external market was light, and the shipping offer was weakened to 990 dollars / ton, and the possible negotiation was on the 980-985 US dollar / ton; the bond price was 5-10 US dollars / ton.

Due to the pformation of PTA pricing mode, the importance of PX to PTA price is rising. Considering that the current PX production profit can be coupled with the increase of pre production capacity and the increase of operating rate, the relative PTA operating rate will remain low. This will effectively enlarge the extent of PX supply increase, plus the long term weak expectation of crude oil, and the price of PX is not optimistic.

In addition, the current

The resistance and the stock are still relatively high, while the low operating rate and sustained losses are still continuing. Therefore, we think the supply and demand contradictions in the future market will be weakened, and in recent months, the contract has narrowed down its cost and spot prices, and the PTA price is likely to return to the disadvantage.

As far as operational proposals are concerned, we believe that in view of the fact that the spot price is still supporting certain contracts for the long term, the short term shock interval will be moved down to 7000-6700 yuan / ton, suggesting 1501 empty single warehouse holders.