SunSirs: Demand is Sluggish and PTA Prices Continue to Rise with Insufficient Momentum

https://www.chemnet.com   Aug 16,2024

According to the commodity market analysis system of SunSirs, today (August 13), the domestic PTA market has seen a slight recovery, with the average spot price of PTA in East China at 5,610 RMB/ton, up 0.20% from the previous trading day. A mainstream PTA factory officially announced a maintenance plan for the unit. In addition, a 2.2 million ton PTA unit in East China was shut down unexpectedly, and the strong volatility of international crude oil has strengthened cost support and boosted the PTA market. Specifically:

Two sets of 4.7 million ton PTA units in Northeast China are scheduled for maintenance, of which a 2.5 million ton PTA unit is scheduled for maintenance on August 17; a 2.2 million ton PTA unit in East China was shut down unexpectedly on August 12, and another 1.2 million ton unit is scheduled for maintenance in September. The planned maintenance and short stop of the unit will have certain benefits for the PTA market. At present, the domestic PTA industry's operating rate is around 83%, and the short-term PTA supply has decreased.

At the same time, on August 12, international crude oil futures rose sharply, with the settlement price of the main contract of US WTI crude oil futures at $80.06 per barrel, up $3.22 or 4.2%. The settlement price of the main contract of Brent crude oil futures was $82.30 per barrel, up $2.64 or 3.3%. The geopolitical situation remains tense, and international crude oil fluctuates strongly, which still supports PTA costs.

Downstream polyester production has rebounded slightly, but it is still at a low level. In addition, market rumors say that polyester factories may increase production cuts. In addition, since August, the high temperature has continued. Under the policy of staggered electricity consumption, most terminal textile companies have maintained a low operating rate. At present, the operating rate of looms in Jiangsu and Zhejiang has dropped to around 60%. The demand for domestic and foreign trade textiles remains weak, and the progress of autumn and winter orders is slow. Under the performance that is not as expected, the operating rate will further decline. In the short term, if there is no positive stimulus, the overall PTA demand performance will remain weak.

Analysts from SunSirs believe that the upstream cost side still supports the cost of PTA, but downstream polyester procurement is sluggish and the enthusiasm for stocking raw materials is not high. It is expected that there will be insufficient momentum for PTA prices to continue to rise.

If you have any questions, please feel free to contact SunSirs with?support@SunSirs.com

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