No Good Upstream And Downstream Stimulate PET Staple Market Temporary Stability

According to the price data of business associations, by July 12th, the average price of domestic 1.4D*38mm polyester staple fibres was 8665 yuan / ton, up 17.97%, or 1320 yuan / ton, down 3.26%, or 293 yuan / ton. Dachang price basically maintained at 8500-8800 yuan / ton, large single negotiation can be preferential 200-300 yuan / ton.

Upstream crude oil is surrounded by many factors. First, because of the tight global trade situation and the slowing economic growth, the US economy is facing great uncertainty. In July, the Federal Reserve announced a 25 basis point cut in interest rates. Because the correlation between the dollar and crude oil has weakened in recent days, the support for the oil price is relatively limited. Second, the summer hurricane in the United States will frequently hit the coast of Mexico in the summer season, which may cause the volatility of the oil price, including the decline in the operating rate of the refinery and the decline in output. Third, the summer is the peak season for consumption in the US market. The increase in driving volume will boost consumption, and the US crude oil will go into the inventory period. Finally, and the most important point, the relations between the United States and Iran will deteriorate and the situation in the Middle East will continue to be tense. The United States has declared an exemption from sanctions against Iran, declaring unilaterally that some countries will be subject to sanctions by the United States if they continue to import Iran crude oil, while Iran also announced that it would suspend some of the provisions of the TRIPS Agreement.

At present, the mainstream suppliers of PTA have an absolute right to speak of the market, which controls nearly half of the mobile social stocks. The reason is that almost no new capacity has been put into the market in the 7 and 8 months of two, forming a pattern of oligopoly. PTA spot base fell slightly but the price was strong, PTA spot processing fee maintained near 2000. After June, downstream polyester products and other products are in a production cycle, triggering the bottom line sentiment. Polyester prices rose slightly, some pet products cash flow loss, production and sales returned to 9. The PTA1907 contract is about to be delivered. Although the liquidity of PTA has been strictly controlled, the pattern has eased. However, the market is short of positive news and is expected to adjust the PTA price in the short term.

The downstream 32S polyester yarn was closed to July 12th, and the average factory price in Shandong was 15560 yuan / ton, up 1.17%, or 180 yuan / ton, up 0.13%, or 20 yuan / ton, and the mainstream factory quoted 15800-16500 yuan / ton. Textile factories in some parts of Shandong are more concentrated. In recent years, the market of yarn is rather poor, which restricts the development. Manufacturers reflect that the procurement of raw materials will shorten the procurement cycle and reduce the volume of purchases according to the fund and product demand. Affected by the decline of Zheng cotton futures market, the spot market pressure increased, but the market remained weak and stable, the supply of market resources was more adequate, and the rational procurement of enterprises, the yarn market remained stable in the near future.

To sum up, business analysts believe that the US Federal Reserve has cut interest rates, the US Gulf has been hit by hurricanes, the crude oil is in a state of de stocking and the tension between the US and Iraq. In a short time, the crude oil trend is strong enough to push up oil prices. PTA is in the off-season, with low operating rate, lack of positive stimulus and price adjustment. Downstream yarn manufacturers purchase on demand, the market is cautious, market resources are adequate and stable. Overall, polyester staple market continued to maintain a stable price is expected to remain at around 8500-8700 yuan / ton.