Supply Tightening Concerns PTA Main Contract Rose More Than 3%

According to the price monitoring of business associations, the price of domestic PTA spot market rebounded slightly in July 10th, and the average price was 6648 yuan / ton on that day, up 1.08% from the previous trading day, up 10.50% over the same period last year. Futures market, close to the main futures (1909) closed at 6120 yuan / ton, compared with the previous trading day rose 188 yuan / ton, or 3.17%.

On the device side, Fuhua chemical industry and trade 4 million 500 thousand tons of equipment overhaul, and Hengli Dalian 2 million 200 thousand tons plan recently overhaul 15 days, the PTA operating rate dropped to 89.59%, the market worried about the supply side tightening influence, leading to the PTA main futures futures substantially increased in the afternoon, the spot market trading activity also increased.

Upstream overnight oil prices rose due to the progress of Sino US relations. The main futures of international crude oil futures closed at 57.83 U.S. dollars / barrel in July 9th, up about 0.17 U.S. dollars / barrel compared with the previous trading day. Asian PX prices continued to rise, closing in July 9th to US $863 / tonne CFR China, up about 10 US dollars / ton from the previous trading day. Lower polyester links maintain low inventory, installation maintenance plan increased, start-up load will be about 87%, polyester factory quotations will continue to cut 100-200 yuan / ton, Jiangsu and Zhejiang polyester POY (150D/48F) mainstream offer 8300-8700 yuan / ton, weaving enterprises just need to take goods, prudent procurement.

Xia Ting, a business analyst, believes that the PTA futures market is strong enough to support spot prices in the short term, but there are still signs of a reduction in polyester production. It is expected that the continued rebound will not drive enough and the growth space will be limited. The market still needs to pay attention to the basic situation. Asian PX's second quarter centralized maintenance has come to an end. The new capacity of Sinochem Hong Run PX is expected to be supported or weakened by cost side. Demand side, the current lower reaches of polyester products inventory is low, and there are 600 thousand tons of Tong Kun, new Feng Ming 300 thousand tons of new capacity to put into operation is expected to be cautious to many.