Market Dynamics: There Is No Obvious Positive Or Insufficient Driving Force Of PTA Upward

According to the price monitoring of business agency, the domestic PTA market continued to rebound slightly yesterday (December 28). The average price of East China market was 4881 yuan / ton, up 1.77% compared with the previous day and 34.67% higher than the previous day. The main PTA futures 2205 closed 4944 and settled 4910, up 86 or 1.77%.

The recent rebound in crude oil prices, driven by the cost of oil prices, is good support for the cost and mentality of chemical products. WTI is back on top of $75 to a nearly one month high. The Omicron variant virus spread rapidly, but the symptoms appeared to be milder than the previous variants; The market hopes that Omicron will weaken its influence on global demand in 2022 and oil prices will be supported. On December 27, the settlement price of the main contract of WTI crude oil futures in the United States was USD 75.57/barrel and that of Brent crude oil futures was USD 78.22/barrel. Recent domestic PTA plant equipment change statistics

Recent domestic PTA plant equipment change statistics

At present, domestic PTA plants have been restarted one after another, and the industrial start-up has increased to more than 78%, which is 17% higher than the previous low of 61%. In the expectation of increasing supply, the market or the accumulation of stocks will restrain the price of PTA.

At the same time, downstream polyester remained rigid support for PTA, boosted by crude oil, the price of mainstream factories in Jiangsu and Zhejiang increased by 50-100 yuan / ton. Most factories in Shengze area of Jiangsu province plan to have a holiday in the middle of January. Affected by the epidemic prevention and control and production adjustment in some areas, some factories in Shaoxing, Zhejiang Province have been on holiday.

Business agency analysts believe that short-term crude oil shocks, PTA cost support still exists. However, PTA plant restart to increase load, polyester end replenishment intention is not big, and the terminal is expected to weaken later. At present, PTA fundamentals have no obvious positive, and it is expected that the price will continue to move or be insufficient in the future.