Market Liquidity Spot Tight, Short-Term PTA Prices Continue To Fluctuate Warmer

By the collapse of international oil prices, resulting in collapse of cost side support, PTA current price dropped significantly yesterday (July 20). As of July 20, the average price of domestic PTA spot market was 5050 yuan / ton, down 2.29% compared with the previous trading day, and increased by 43.43% year-on-year. PTA futures main 2109 closed 4974, down 158, down 3.08%.

However, it is said that the main port of the Yangtze River is affected by typhoon, and the shipping is closed for three days. The supply of PTA Zhapu and other regions is tight, and the current price fluctuates and rises. Superimposed, oil prices rebounded slightly, and costs boosted. PTA futures main 2109 closed 5190, up 204, up 4.09%. The average spot market price was 5182 yuan / ton, up 2.61%.

In terms of supply, recently, the load of 4.5 million T / a PTA plant in Fuhai was reduced to 60-70% in mid July 2021. The 1.2 million ton PTA plant of Ningbo Taihua will be overhauled from July 10 to 28, 2021. Luoyang Petrochemical's PTA plant with an annual capacity of 325000 tons was shut down at the beginning of July 2021, and has been restarted recently with low operating load. PTA overall industry operating rate is around 80%. The downstream polyester maintains a high operating load of about 88%, and the PTA demand is relatively stable. Therefore, the PTA rate in July is mainly to be de stocked. ?

Business agency analysts believe that overall, considering the recent PTA Market Liquidity tight spot, supply and demand support is OK. And worried about the weather leading to the problem of unloading goods at the port, it is expected that the short-term PTA price will continue to fluctuate and become warmer, but it is still necessary to close the oil market dynamics.