Market Profile
Short Comment
Crude oil prices continued to fall sharply last week, with PX, PTA, and EG following the decline. Currently, the prices of PTA and EG are at record lows Location. With the sharp reduction in upstream raw material prices, PTA processing fees have rebounded. In terms of EG, the survival situation of oil-based MEG is obviously better than that of coal-based MEG. The PTA device was significantly out of service last week, falling 13.06% to 69.7%, but the inventory is still at a historically high level, and the MEG inventory is also advancing towards the highest level in history. The start of downstream polyester production is roughly the same as that of the previous week, at a level of around 80%. Due to the rapid development of overseas epidemics and strong concerns about terminal consumption, downstream procurement is not very active and replenishment is mainly based on demand. Polyester stocks increased slightly compared with the previous week. At present, the inventory pressure is still relatively high. In the short term, PTA and EG will inevitably continue to hover around their positions, and they can consider selling short on bullish prices.
Main risk points
OPEC+ reaches agreement on production reduction, epidemic progress
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