PTA Futures Prices Still Have Room For Growth.

Following the explosion of the Tenglong PX project in Gure, Fujian, Nanjing's Yangzi Petrochemical Plant exploded yesterday morning. Its PTA device stopped immediately, adding a fire to the unilateral rise of PTA futures in the past month, and the related industry chain varieties and stocks were almost boiling. According to the analysis of the industry, the factors such as the PBOC's reduction and the recovery of international crude oil prices have consolidated the current PTA rally, and the frequent accidents in petrochemical factories have further induced the market to worry about the overhaul of the plant. In the short term, speculation still exists, and PTA futures prices are still expected to rise.

According to Xinhua report, at 6 a.m., 07 hours in April 21st, the ethylene glycol T-430 tower of the petrochemical olefin plant of Yangzi Petrochemical Company Limited exploded, causing 1 minor injuries. At present, the glycol unit has been completely stopped feeding, and the firefighters have completed the monitoring. According to the official news of Yangzi Petrochemical, the impact of the explosion of its PTA device immediately stopped and the restart time was uncertain.

In the futures market, PTA reappeared. The main 1509 contract opened up in a straight line, and gradually recovered after nearly five months high 5488 yuan / ton. At 10:35 in the morning, it recovered again and finally rose to 2.03% at 5440 yuan / ton. 1509 contracts were traded 2 million 975 thousand times a day, with nearly 50 thousand holdings of capital.

At the same time, PTA Downstream polyester enterprises have also been boosted, prices continue to rise, the mainstream factory prices in Jiangsu and Zhejiang increased by 200 yuan / ton. On the A share market, Hengyi petrochemical and Rongsheng Petrochemical rose 5.98% and 5.48% respectively. Glycol Technology and technology in Donghua also rose by 6.37% and 4.72% respectively.

According to the business agency, 94% of ethylene glycol is used to produce polyester. PET Polyethylene glycol terephthalate is the raw material for producing chemical fiber, beverage bottle, film and other plastic products. The other 6% is mainly used in the production of antifreeze, adhesives, paint solvents, surfactants, etc. Statistics show that at present, the total production capacity of ethylene glycol is 6 million tons, of which Yangzi Petrochemical is 300 thousand tons, accounting for 5% of the total capacity of the country, and the total capacity of East China is 2 million 410 thousand tons, accounting for 12.4% of the total capacity in East China. The total capacity of PTA in China is 44 million 490 thousand tons, and Yangzi Petrochemical is 1 million 350 thousand tons, accounting for 3% of the total capacity of the country. The explosion of ethylene glycol production is also affected, but also will affect the PTA industry raw materials supply.

Since April, by the explosion of Tenglong PX project in Gure, Fujian and the lifting of crude oil prices, the PTA spot market price has rebounded significantly, and has risen more than 12% in the past 20 days. The price of PTA futures has increased by nearly 20% in the past 13 trading days.