Analysis Of Factors Affecting PX Market In The Near Future

The recent impact on the PX market mainly includes the following aspects: first, the impact of the new device on the market; second, the impact of Typhoon on the market. Let's analyze it in detail

The trend rose sharply ? Processing costs have risen significantly

PX and related products

Unit: USD / ton

It can be seen from the above table that PX price and processing cost have performed well this month. Although a new device product has been qualified last Thursday, PX processing cost has been greatly reduced every time new products are produced in recent two years. Especially in the early stage of the commissioning of Hengli device in 19 years, the PX processing fee has fallen sharply. So the 2.5 million tons of new units put into operation, the market seems to have no response, on the contrary, the trend of PX is gratifying. So, in addition to the cost side, what are the reasons?

1、 ?? Unit failure, downstream PTA plant put into operation and PX mismatch, in short supply

In June, the domestic PX unit failed, mainly reflected in the units of Zhejiang Petrochemical phase I, Fujian united and SINOCHEM Quanzhou. Therefore, the PX supply in July and August was affected to some extent. It is said that there was a certain contract reduction phenomenon in July and August. At the same time, the PTA plant of Yisheng new materials produced qualified products in early July, while the PX plant was put into operation later than PTA, which led to the strong spot purchase in the market. It was heard that the floating price was close to + 10 USD / T, and the import data in June increased by 100000 tons, which also confirmed this view.

2、 ?? Overseas units have more maintenance and load reduction in May

As we all know, the current production of PX in South Korea has a great impact on the liquidity of PX market. Since May, due to the low price difference between PX and MX, and the shortage of toluene, as well as the obvious increase in domestic production in China, the load of Korean factories has generally decreased from 90% to 80% from full load to overload, while SK and Hanhua have also been overhauled as scheduled, and Hyundai has experienced some failures. However, with the increase of China's demand, the load of Korean factories in June also increased correspondingly. However, the decrease of load in May restricted the supply of spot goods to a certain extent. On the other hand, due to the impact of the epidemic, ompl factories have changed production, and domestic factories have reduced their PX purchasing sentiment towards India. Therefore, the PX spot from India to China is generally low.

Affected by typhoon, downstream sentiment led to the rise of PX price

The recent market focus is mainly on the PTA market. Typhoon has a certain impact on PTA transportation. The price rises sharply, and PX price rises in linkage. What is the impact of Typhoon on PX?

Longzhong understands that the typhoon has no impact on the production of PX, but only on transportation and shipment. Longzhong understands that PX factories in Zhejiang and Shanghai have difficulties in delivering goods, while factories in other regions can send px. However, after delivering goods to Zhejiang and other regions, unloading needs to wait. As we all know, there are typhoons every year, but why is the impact so great this time? During the typhoon period last year, PX prices were not driven. This is mainly because of the serious epidemic situation last year, and the raw material inventory of downstream factories of PX is high. However, this year's inventory is controllable as a whole, and some factories have been short of raw materials. Therefore, the typhoon has also boosted the rise of PX prices.