Good News Boosted PTA'S Rebound

According to the price monitoring of business associations, the price of domestic PTA spot market rebounded slightly in October 24th, and the average price of the market was 5004 yuan / ton, up 1.51% from the previous trading day, down 31.13% from the same period last year. Futures market, PTA main futures also went up, closing to the main futures (2001) closed at 4942 yuan / ton, compared with the previous trading day rose 64 yuan / ton, or 1.31%. Intra day turnover increased from 158 thousand and 600 to 1 million 414 thousand and 600, and 106712 to 1 million 502 thousand and 300.

Recently, a number of large units have been overhauled, resulting in a PTA load drop to 89%. Next week, the PTA supply terminal repair and reboot coexist. The Honggang petrochemical plant is restarted and the Peng Wei petrochemical plant is restarted. Hengli Petrochemical 2 plant is scheduled to be overhauled in October 26th. Ningbo Yisheng, Jiaxing petrochemical and Helen Petrochemical 11 and December still have plant maintenance plans.

In addition, from the perspective of the new production capacity, the new Feng Ming 2 million 500 thousand ton plant, of which 1 million 250 thousand tons of lines are planned to produce grade products early next week. The commissioning test of Zhongtai Petrochemical Company's annual output of 1 million 200 thousand tons PTA project is drawing to a close. It marks the launch of the linkage test of PTA plant. It will help fuel the commissioning of the PTA plant. The market's worries about the supply side will bring some pressure to the price.

On the cost side, the US crude oil storage unexpectedly dropped, overnight oil prices rebounded strongly, and the closing price of the PX market in Asia increased by 4 US dollars / ton, closing at a price of 765-767 US dollars / ton FOB Korea and 785-787 US dollars / ton CFR China, which has some favorable effects. However, the domestic PX capacity is in the expansion cycle, the processing gap remains low, the price trend is stable, and the mainstream factory price is 6800 yuan / ton.

Raw material quotas rebounded to promote the formation of downstream polyester related products. The prices of mainstream polyester factories in Jiangsu and Zhejiang provinces were moderately warm, and individual specifications were increased by 50-100 yuan / ton. Among them, polyester POY (150D/48F) reported 7150-7300 yuan / ton, DTY (150D/48F low bomb) 8750-9200 yuan / ton, FDY (150D/96F) reported 7300-7550 yuan / ton. Jiangsu and Zhejiang looms comprehensive maintenance rate remained near 77%, the terminal has not made significant progress, the market cautious wait-and-see mood is not reduced.

Xia Ting, a business analyst, thinks that in the near future, the progress of crude oil upkeep, the maintenance of PTA devices and the progress of Sino US economic and trade consultations have made some progress, which will bring some support to the price of PTA in the near future. But with the new capacity coming close, coupled with the weak demand for the downstream, the pressure of storage is highlighted, and the possibility of PTA falling in the medium to long term is still large.