As of September 10, the PTA processing fee reached 604.28 yuan/ton, a decrease of 39.63% from 1,000.99 yuan/ton in the same period last year. Judging from the current processing fees, they are still at a relatively optimistic level. Especially in the special year of 2020, PTA processing fees have broken through the adversity. Who would have thought that it would be able to ride the wind and waves like this.
Figure 1 Comparison of PTA processing fees from 2017 to 2020
Source: Longzhong Information
PTA processing fees superimposed on the epidemic when new equipment is put into production Despite the impact of the outbreak, the industry’s processing fees are still on the upper side, which is still somewhat higher than expected. After the minimum processing fee dropped to 345.7 yuan/ton after the Spring Festival, it began to rebound slowly, with the highest point reaching 964.2 yuan/ton in early June. Subsequently, due to price increases, the processing fee continued to fluctuate around 6-700 yuan/ton. Judging from the current situation, although processing fees continue to rise to a limited extent, they have not yet bottomed out.
Under the current volatile market of processing fees, PTA factories still intend to postpone maintenance, and judging from the current maintenance expectations, the equipment maintenance of major manufacturers has not yet been completed. It is clear that there is still room for adjustment in processing fees in the future.
As can be seen from the above table, PTA still has 27.425 million tons of equipment that have not yet been overhauled. If the equipment maintenance plans are fulfilled in the fourth quarter, there will be an average of more than 9 million tons of equipment expected to be overhauled every month. However, Judging from the current maintenance status, it is not optimistic. However, it can also be inferred from this that although Xinfengming is expected to be put into production in the fourth quarter, judging from the amount of equipment that has not been overhauled, the supply side of the market outlook is still controllable.
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