According to the price monitoring of Business Society, the domestic PTA market has shown a downward trend in the past week, as of 9 The average market price on March 9 was 3,501 yuan/ton, down 3.02% week-on-week and down 33.72% year-on-year. The restart of its own equipment, the fall in oil prices and the limited recovery in demand have combined with negative factors to cause PTA prices to fall.
Recent changes in domestic PTA devices
In terms of PTA equipment, Hanbang Petrochemical’s 2.2 million tons restarted at the end of August, and Reignwood Petrochemical’s 1.4 million tons load continued to increase and reached full capacity on September 7. Luoyang Petrochemical’s 325,000-ton production is scheduled to restart on September 14, and Ningbo Yisheng’s 2.2 million-ton production is planned to restart on September 17. The industry’s operating capacity is above 87%, spot supply is loose, and market sentiment is weakening.
In the crude oil market, most oil and gas production in the U.S. Gulf region has resumed, and international crude oil prices have fallen rapidly. As of September 9, the closing price of international crude oil WTI was 36.76 US dollars per barrel. BRENT closed at $39.78 per barrel, falling to its lowest level in nearly three months. The downstream polyester market is weak, and production and sales are light. Raw materials followed the decline of crude oil, the wait-and-see atmosphere in the polyester market increased, and demand weakened. Inventory continues to rise, with the overall polyester market inventory concentrated at 33-41 days; in terms of specific products, POY inventory is around 12-18 days, FDY inventory is around 23-35 days, and DTY inventory is around 31-44 days. Factory prices are stable but weak, and some factories are negotiating discounts based on volume. Polyester POY (150D/48F) from mainstream factories in Jiangsu and Zhejiang is quoted at 5050-5350 yuan/ton.
Terminal textile demand increased slightly, autumn and winter fabrics Demand still increased month-on-month, and the “Golden Nine” market trend was partially smooth. Recently, the marketing of autumn and winter fabrics such as polyester-cotton corduroy and polyester-wool woolen fabrics in China Textile City has gradually become smoother, and the market transaction volume has also increased day by day. In addition, the shipment of orders for early winter clothing fabrics also increased slightly month-on-month, with the transaction prices and volumes of polyester fabrics, polyester-cotton fabrics, polyester wool fabrics, and polyester nylon fabrics rising in varying amounts. Overall, terminal textile orders have improved in both domestic and foreign trade markets, which has improved the dull market sentiment. The comprehensive operating rate of Jiangsu and Zhejiang looms has slightly increased to around 69%.
Business News analyst Xia Ting believes that crude oil prices rebounded quickly in mid-week, and there may be a restorative rebound after the sharp decline. In terms of PTA supply, although there are maintenance plans for some units at the end of September and early October, the maintenance has been reduced compared with August, and the output has increased more as the units restarted. At the same time, Dushan Energy’s second phase of 2.2 million tons of new PTA production capacity has been put into operation. As the epidemic approaches, it is difficult to change the pattern of accumulated inventory. The start-up of downstream terminal weaving shows a slight increase, but compared with previous years, the load is still at a lower level. Expectations for the market outlook are also quite cautious, and the prospects for the “Silver Ten” are not clear. The short-term PTA trend is expected to be weak, and we still need to pay attention to crude oil and maintenance conditions in the future.
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