Raw Material Falls, PTA Supports Collapse

On Monday, many investment banks in Wall Street and Persian Gulf oil producers sharply lowered oil prices, and oil prices fell to a five year low.

On Tuesday, the lack of information guidelines led to a decline in the dollar's exchange rate.

Crude oil futures fell sharply on Wednesday when the US crude oil inventories unexpectedly increased and OPEC cut demand for oil.

On Thursday, the three largest oil producing countries in the Persian Gulf lowered their official sales price. Saudi Arabia's oil minister asked reporters why they want to cut production. After the international oil price rebounded, the oil price fell, and the rise in the dollar also suppressed oil prices.

According to the US energy information administration, the US crude oil and refined oil storage increased substantially in the week ending December 5th.

US crude oil inventories are 380 million 790 thousand barrels, 1 million 450 thousand barrels higher than the previous week, and US gasoline inventories of 216 million 760 thousand barrels, 8 million 200 thousand barrels higher than the previous week, and distilled oil inventories of 121 million 750 thousand barrels, up 5 million 580 thousand barrels from the previous week.

Crude oil inventories were 1.5% higher than the same period last year; gasoline inventories were 1.1% lower than the same period last year; distillate stocks were 3.1% higher than the same period last year.

Crude oil inventories are higher than the average range of the same period over the same period of five years; gasoline inventories are in the middle range of the five years average period; distillate stocks are close to five years and the average range is lower.

US commercial oil inventories grew by 7 million 450 thousand barrels.

The operating rate of the refinery is 95.4%, an increase of 2 percentage points over the previous week.

Crude oil imports last week averaged 7 million 668 thousand barrels a day, 365 thousand barrels more than the previous week, and the average daily import volume of finished oil was 155 barrels, down 207 thousand barrels from the previous week.

This week, under the pressure of international oil prices, the price of the PX market continued to decline. Although the market was strongly rebounded on the buying intention on Wednesday, it was also difficult to escape from bad luck.

This week, the Asian PX market has fallen to its lowest level in 4 years. Data show that the low price of PX appeared in July 23, 2010, when the price was $877.5 / tonne CFR.

However, the downtrend of PTA will be slowed down by the restart of the downstream PTA device and the intention of some PX devices to reduce production.

As of the weekend, the Asian PX market price remained at 838 US dollars / ton FOB Korea and 860 US dollars / ton CFR Taiwan.

Installation, India OMPL 92 million tons PX device due to device failure, 12.1 days began a short stop, manufacturers have been restarted the device on 12.10, after the restart, the device gradually increased to full load operation.

The 500 thousand ton PX plant in Kazakhstan is now being tested, and no qualified products are available.

As international oil prices continued to fall this week, the pessimistic atmosphere of the PX market shrouded and prices continued to decline. The PTA market was affected by the restart of parking devices at the beginning of the week, and prices were falling all the way. By Wednesday, the market had fallen below 5000 yuan mark.

Although the downstream polyester production and marketing continued to maintain at around 6-7, the device load was also running at about 8 percent, but it failed to restore the PTA's decline. However, it played a certain role in reducing the price.

As at the end of the week, the PTA market in East China agreed to maintain 4950 yuan, and the US dollar talks remained at 670-675 US dollars / ton.

On the device side, Hengli Petrochemical 2 million 200 thousand ton PTA device was restarted this weekend, and Yanda Shing Hua 1-2 device switched to stop. Zhangzhou Xiang Lu plans to restart this weekend.

Taiwan's East Timor plans to park its 440 thousand ton PTA facility in mid December.

Taiwan and China plan to park their 700 thousand tonnes of PTA devices in Taichung in mid December.

Hengli 3#'s new capacity has been completed in November 25th.