alphablocksscratch| The average spot price of PTA in East China rose 0.52% weekly: operating rate of 75%, downstream demand weakened
Newsletter summary
The domestic PTA market rose slightly this week.AlphablocksscratchThe average price increased by 0 compared with the previous monthAlphablocksscratch.52%. Fluctuations in oil prices, frequent plant maintenance and weakening demand for polyester, analysts expect PTA prices to fall risk.
Text of news flash
The domestic PTA spot market fluctuated and rose this week, with the average price in East China slightly rising to 5946 yuan / ton.
The domestic PTA spot market showed a volatile upward trend this week (May 20-25). As of May 25, the average market price in East China was 5946 yuan / ton, up 0.52% from the beginning of the week. [the domestic PTA plant has experienced frequent changes, and the industry operating rate has been maintained at 75%] as Dongying's 2.5 million-ton PTA plant starts an expected 40-day overhaul, the 3.3 million-ton Yisheng new material plant has also carried out a 20-day overhaul since May 16. The 1.5 million-ton plant of Ningbo Taihua was shut down on May 23 and is expected to be shut down for one month. Meanwhile, Ineos's 1.25 million-ton PTA plant in Zhuhai was suspended for four days since May 20, but resumed operation over the weekend. At present, the operating rate of the PTA industry remains at about 75%, and the device is not expected to change much next week. [international oil prices fluctuated under the influence of multiple factors, and the PTA market was boosted.] at the beginning of the week, due to the positive impact of the expected improvement in oil demand, the decline in crude oil stocks in the United States, and geographical tensions, the rise in international oil prices had a positive effect on the PTA market. However, Fed minutes showed a possible delay in interest rate cuts, coupled with an unexpected increase in US oil inventories, leading to a downward adjustment in oil prices on several trading days. As of May 23, the settlement price of the main contract of WTI crude oil futures was 76.87 US dollars per barrel, while the settlement price of Brent crude oil futures was 81.36 US dollars per barrel. The price of WTI crude oil fell to a three-month low. [supply pressure in the PX market alleviated due to unexpected parking] in the PX market, Malaysia's 550000-ton PX plant resumed operation earlier this week after it was shut down due to failure on May 9. At the same time, the 1.34 million-ton PX plant in Saudi Arabia is not expected to be shut down, which has previously been unstable and operated at a low load. Since May, accidental parking accidents have occurred frequently, which has effectively alleviated the supply pressure. [downstream polyester plant production reduction, PTA demand challenges] although the downstream mainstream polyester factory concentrated production reduction and tend to support the market, the appropriate replenishment of raw materials, but the off-season effect of the end market and summer weather changes make polyester operating rate is expected to decline, the demand for PTA has weakened, there is the expectation of tired inventory. The reduction in demand may exacerbate the oversupply of PTA, putting pressure on PTA prices. [analysts predict that PTA prices are more likely to fall] analysts expect that as crude oil prices fall, the cost support of PTA will weaken, and downstream polyester plants are more likely to reduce production, resulting in reduced demand for PTA. In addition, the low processing fee in the market may also increase the number of unplanned overhauls of PTA devices. In the context of the lack of bullish news in the current fundamentals, PTA prices are expected to face a greater possibility of falling.2024-05-25 19:38:33
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