PTA Pick-Up In Processing Fees Stimulates Production Growth
After entering December, with the approaching of new year's day, the load of the downstream looms will gradually decline, and the polyester operating rate may also be moderately low, but the specific time and magnitude depend on the market performance.
Therefore, it is expected that polyester enterprises will still have certain stock preparation capacity before mid December. When the price of PTA is adjusted, the action of moderate buying will be closed.
Price
Falling space, PTA is expected to slowly oscillate warmer.
Since the second half of the year, the domestic polyester market has performed well, and the stock of polyester enterprises has been declining, which has dropped to a relatively low level in the near future.
The operating rate of polyester industry remained at a high level during the year, which is also significantly higher than that of the same period in previous years. This demand for PTA is better. From historical data, this situation is expected to maintain until December.
This shows that the rise in PTA processing fees stimulates production growth, which in turn will restrict the rise of PTA prices.
Therefore, it is expected that PTA will be suppressed by overcapacity for a long time to maintain a low oscillation situation, and it will be difficult to maintain a sustained and rapid rise in prices.
In the early November, the upper reaches
Raw material Market
Weak, PTA supply increased, downstream demand decline and other sharp resonance, PTA prices once fell rapidly, but the main 1701 contract in 4750 yuan / ton to get technical support, while crude oil prices rebound and also make the market atmosphere warmer, PTA prices rebounded this week.
The author believes that under the support of rigid demand, once raw material prices fall, polyester plants may choose to buy at bargain prices, so that PTA prices will soon stabilize and pick up.
Conversely, once the PTA price rises rapidly, it may lead to corporate hedging operations, thereby limiting PTA price rise.
Because of the partial disagreement among OPEC members, the market worried that the Vienna conference in November 30th might not be able to reach an agreement. It once became an important negative force in the crude oil market, which led to a continuous decline in crude oil prices. However, OPEC Secretary General Barr Kim said on Monday that OPEC will abide by the September production reduction agreement, which has boosted the international crude oil market.
In addition, the Federal Bureau of investigation decided to cancel Hilary's investigation, and the US stock market was significantly boosted, and crude oil prices rebounded accordingly.
Since late October, crude oil prices have continued to fall, driving down the price of naphtha and PX, resulting in the downward trend of the cost of PTA and the warming of the wait-and-see atmosphere in the downstream market.
Polyester filament
The drop in production and sales and multiple negative resonances resulted in the PTA price falling from 4900 yuan / ton to 4750 yuan / ton.
However, the recent crude oil prices are expected to stop temporarily. The weakening of the raw material market will help stabilize the market mentality. The production and sale of polyester products on Monday will be more than 100%, which can strongly prove this view.
Therefore, once crude oil prices rebound, they will stage a boost to PTA.
Wind information released data showed that as of November 4th, domestic PTA operating rate rose to 75.7% annual high.
At present, the domestic PTA capacity is still surplus, and the industry is in the stage of elimination of backward production capacity.
To this end, the domestic production giant has changed the original joint production reduction strategy, but hopes to eliminate backward old equipment through the competition of processing fees.
Once the PTA processing fee rebounded, it may make the old plant that has stopped production resurgence, which is PTA production enterprises do not want to see.
Based on the above analysis, since November, the price drop of PTA is mainly due to the decline of the cost caused by the continuous decline of crude oil and the fall of the production and sale of downstream polyester products. The overcapacity of the industry also does not support the sustained and rapid price rise. However, the low inventory and high load state of polyester enterprises is a potential advantage for the market, which will remain until December.
Therefore, in the long run, the pattern of excess capacity will restrict the rise of PTA, but in the medium term, under the support of rigid demand, the decline of PTA is limited, and the oscillation is still the main theme.
Investors are advised to maintain bargain buying in the four quarter, with short and medium term operations.
- Related reading
- Fashion character | Although The Classic Jeans, But Also Chiang Kai Ting, This Figure Can Perfectly Reflect The Charm Of "It".
- Fashion character | Zhao Now Wears A Shirt Tie And A Half Skirt, And The Air Field Is Not Like A 17 Year Old Girl.
- Fashion character | Wu Chin Said 12 Color Hair Cards With Yellow Dresses, Too Young.
- Shoe Market | Foot Locker X Nike Brand New Series Shoes On Sale, Swoosh Hidden Eggs!
- Shoe Market | Nike Is About To Duplicate Blazer Mid.
- I want to break the news. | Nike Air Max 2 Light New Color Matching Is On Sale!
- Expert commentary | Can The Market And Elastic Fabric Market Flourish?
- Fashion brand | Chao Licensing Website Caliroots 2019 Early Autumn Model Lookbook Released
- Commercial treasure | Novice Sijiqing Take Delivery Of Spoken English To Share With Sijiqing, What Skills Are There?
- Commercial treasure | Novice Clothing Purchase Skills To Speak, A Collection Of Jargon.
- In Cold And Cold Winter, You Can Also Wear A Warm Current.
- Internet Solves The "Stubborn Disease" Of Traffic Chaos In Shahe'S Clothing Business Circle.
- Modern Avenue Purchased 100% Stake In Yuenan Company For 490 Million Yuan.
- Burberry Medium Term Profit Dropped Sharply Due To Market Downturn 24%
- How Much Energy Does A Pair Of Basketball Shoes Have?
- The "Fengxiang Imprint" Poster Is Exposed.
- China'S Stores Continue To Suffer From Cold Snap
- Jiangsu Beauty Shine The World! China International Cheongsam Culture Festival, World Cheongsam Cultural Ambassador Final, Jiangsu Three Strong
- Yang Mi Was Derailed By Hawick Lau And Could Wear Such A Young Girl'S Style.
- High Collar Sweater + Coat Is Fashionable With Sex.