New Capacity Production Expected PTA Market Fell Slightly

According to the price monitoring of business associations, the price of domestic PTA spot market dropped slightly in November 20th, and the average price of the market was 4791 yuan / ton, down 0.05% from the previous trading day, down 29.33% from the same period last year. Futures market main futures (2001) closed at 4714 yuan / ton, compared with the previous trading day fell 26 yuan / ton, or 0.55%. Intra day turnover lightens 240 thousand to 884 thousand and 400 hands and positions 8690 to 1 million 504 thousand and 600.

Although PTA suppliers buy back support for spot, new capacity is expected to restrict its rebound. Among them, the Dushan energy phase 2 million 200 thousand tons PTA plant another 1 million 100 thousand tons line plans to test next week. Hengli Petrochemical four phase 2 million 500 thousand ton PTA plant is scheduled to go into operation before the end of December. China Thailand Petrochemical 1 million 200 thousand tons PTA plant plans to start production near December 20th.

At the same time, the impact of crude oil downturn, cost side support is insufficient, Asian PX market closing price fell 3 U.S. dollars / ton, closing price of 768 U.S. dollars / ton FOB Korea and 788 U. s.dollars / ton CFR China. Downstream part of the polyester filament specification expansion phenomenon is serious, the mainstream factories in Jiangsu and Zhejiang provinces have the intention to increase, of which polyester POY (150D/48F) reported 6850-7200 yuan / ton, DTY (150D/48F low bomb) 8500-8700 yuan / ton, FDY (150D/96F) reported 6950-7400 yuan / ton. However, the mentality of downstream bombs and weaving enterprises is relatively cautious, and there is no significant improvement in the turnover atmosphere. The comprehensive boot rate of Jiangsu and Zhejiang looms is maintained at around 75%.

Xia Ting, a business analyst, believes that the current spot is still tense, but because of the new production capacity put into production, while the raw material market trend is weak, so the short term PTA market volatility is weak.