PTA Market Is Expected To Achieve "Salted Fish Turn Over" In The Short Term.

According to media reports, Shaoxing Far East Petrochemical has stopped production and applied for bankruptcy and liquidation to the court.

Far east Petrochemical Industries Co has PTA capacity of 3 million 300 thousand tons, and is the largest PTA manufacturer in China.

This is the most important case of capacity withdrawal in the field of PTA in recent years, which means that the production capacity of polyester industry is accelerating.

As we all know, the price of products is determined by the balance between supply and demand of the market. Oversupply will inevitably lead to a fall in prices. If the price is lower than the cost for a long time, some enterprises will inevitably be eliminated, so as to achieve a new market equilibrium.

As early as March this year, there was news that the PTA giant Far East Petrochemical started bankruptcy proceedings, and factories began to shut down.

Affected by this, the price of PTA has slowed down.

Looking ahead, although the current downstream polyester start to maintain low around 74%, and the raw material is limited, but there is no shortage of manufacturers in the near future market, and traders at low prices, PTA

Relatively strong.

Raw materials also have strong support. Although there are still unstable factors in international oil prices, raw material PX remains stable and small and medium.

The US PX market tends to be tight in the near future, while the supply of PX in Europe is also tight. Asia may become a new source of raw materials for PTA producers in the US.

U.S.A

Manufacturers have been negotiating the purchase of PX goods from Japan and South Korea to the United States.

If a large number of PX goes to the US, the supply of the future Asian market will decrease, and the tight price of raw materials will boost the PTA price.

In fact, since the end of July, the price of PTA futures has started to rise. On July 24th, the price of PTA futures rose from about 4550 yuan per ton to more than 4612 yuan per ton.

Last week, PTA (purified terephthalic acid).

After a long period of low wandering began to exert force, there was a wave of rising prices.

Ordinarily, with the further decline of international crude oil prices, the downstream oil products are hard to rise, but PTA has gone against the trend. The secret is the shutdown of Shaoxing's Far East Petrochemical Company, PTA.

The author believes that PTA has entered the stage of capacity withdrawal, and at present the global PX supply is tight. PTA market is expected to achieve salted fish turning over in the short term.