SunSirs: Strong Bearish Sentiment in the Market, PTA Prices Maintained a Downward Trend

https://www.chemnet.com   Sep 04,2024 SunSirs

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On September 2nd, the main PTA futures TA2501 closed at 5,140 RMB/ton, down 274 RMB/ton, a decrease of 5.06%, with a settlement price of 5,248 RMB/ton and a daily increase of 174,465 lots. The spot price followed the decline. According to the Commodity Market Analysis System of SunSirs, the average spot price of PTA in East China was 5,223 RMB/ton, a decrease of 2.96% from the previous trading day.

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The decline in crude oil prices had led to a collapse in PTA cost support. On August 30th, the settlement price of the main WTI crude oil futures contract in the United States was 73.55 US dollars per barrel, a decrease of 2.36 US dollars per barrel or 3.1%. The settlement price of the main Brent crude oil futures contract was 76.93 US dollars per barrel, a decrease of 1.89 US dollars per barrel or 2.4%.

The promotion of demand for polyester during the peak season was slow, and the short-term positive driving effect brought by downstream low-priced procurement was not obvious, resulting in a low intention to receive goods. On September 1st, the 1.2 million ton PTA plant in East China was shut down for maintenance, but the PTA industry's operating rate remained at a high level around 85%, and there was ample short-term supply of goods.

Market outlook

Analysts from SunSirs believe that PTA was still facing pressure from accumulated inventory, and the bearish sentiment in the commodity market was strong, which posed significant resistance to PTA's rise. In the short term, prices will continue to operate weakly. As the traditional consumption peak season approaching, the downstream polyester operating load rate and terminal weaving machine operating rate are increasing, and there are still plans to put new polyester production capacity into operation. The expectation of demand recovery will benefit the market mentality.

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

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