PTA: Spot Price Loosening Price Break Down

Recently, the upstream raw material market of PTA has been slightly differentiated, and crude oil and naphtha with weak initial performance have stabilized. However, the PX price, which has been firmer than before, has dropped significantly in recent years. It has dropped from a high of 1500 US dollars to more than 1300 US dollars / ton.

PX strong lead to its processing profit, high production enthusiasm will in turn suppress its price, so the PX will continue to face the situation of profit, the price is mainly weak.

The fall in the price of PX will directly lead to the downward shift of the cost of PTA, and its price will also be dragged down.

This week, the price of PTA's internal and external market has dropped, and the spot price of the internal market has fallen below 7100 yuan / ton line, but the price of PX has dropped synchronously.

The processing profit is not obviously squeezed, but continues to maintain near the win deficit, which has improved significantly compared with the previous heavy losses.

If later profits continue to pick up, it will stimulate the enthusiasm of enterprises, and in turn will continue to suppress PTA prices.

Therefore, PTA processing is difficult to maintain a good profit, PTA prices are also difficult to separate from the raw material market.

3, the downstream demand is sluggish.

This week, the prices of downstream products were divided, polyester chips and polyester and short prices continued to weaken steadily, and there was a reduction of more than 50 yuan / ton, but the price of filament was steadily rising, of course, the same extent was limited.

Polyester products sales remain weak, mainly because terminal demand is difficult to start.

However, under the premise of the loss of polyester processing, the space for its price drop is also limited.

Under the dual pressure of product backlog and cost extrusion, the polyester plant can only reduce the loss by reducing the operating rate, so the load of the polyester plant continues to operate at a low level.

Although immediately into the traditional consumption season, but the textile and clothing market consumption is weak, the lack of orders, the loom load slightly back to about 72%, the peak market is still difficult to start.

4, summary

Based on the above, we can see that the current PTA market is weak in the upstream and downstream, especially the weak consumption, which leads to the difficulty in the cost pfer of the whole industry chain, and restraining the space of PTA price increase. Although the joint production and price protection of enterprises has brought a tight balance to the supply of PTA, it is difficult to change the weak market situation.