Domestic Cotton Prices Fell Slightly, The Overall Price Of Imported Cotton Increased.

On the 27 day, domestic cotton prices fell slightly.

The downstream demand of textile enterprises is shrinking, which is reflected in the fact that the auction is not active, and the difficulty of exporting is also a main reason that restricts the enthusiasm of the enterprises. However, most of the enterprises are cautious in taking goods and buying with them.

Auction continued, the volume of moderate reduction, the spot market quotation is still relatively stable, with the end of the dumping, some enterprises will increase the willingness to replenishment, the paction slightly improved over the previous period, but it is still difficult to enlarge the overall, the new year cotton policy is coming out, the recent look at less movement, wait and see is appropriate.

China's main port price rises overall, with varieties.

They are all above 0.5 cents.

Last week, the main producing areas in the United States were drier and drier, the growth rate of new cotton slowed down and the price of cotton was strong.

However, the new year in the supply of pressure rise, textile mills with the purchase, large-scale procurement of short term difficult to achieve, restricted the price of cotton outside the space.

In addition, at present, the market is anxiously waiting for the introduction of China's direct subsidy rules, and the trend of China's cotton prices will also affect the external cotton market.

Related links:

Since June, Asian PX has entered a period of great opening of new capacity: in June, the SK/JX 1 million tons PX device was launched in Ulsan. In July, Samsung's Total 1 million tons PX device was launched, in August, the 1 million 300 thousand tons of South Korea's SK Energy and 900 thousand tons PX of India ONGC started.

So far, the new PX device in Asia this year will have only 800 thousand tons of aromatics which are planned for commissioning in early September.

Since only PTA plants were put into operation in China in 2014, the output of these 5 million tons of PX plants still needs to be digested by Chinese PTA enterprises, so the Asian PX capacity for China's imports will exceed 15 million tons.

Coupled with China's own 12 million tons of capacity, to meet China's PTA70% load needs only PX operation rate of about 74%, PX supply will not be tight in the second half of the year.

At present, the difference between PX and naphtha's oil price is still around 400 US dollars / ton, and the profit is still considerable at the cost of 300 US dollars per ton.

When crude oil and naphtha drop, PTA polyester maintains low load, PX does not return below average cost, so it is difficult to reduce load effectively.

Therefore, the cost center of PTA will move downward, which will drag down the price of PTA.