SunSirs: PTA Main Contract Declined by The Daily Limit

Affected by the risk aversion sentiment of epidemic prevention and control, the opening of domestic futures market fell mainly on the first trading day after the Spring Festival, in which the main contract of PTA fell and stopped, closing price was 4,470 yuan/ton, down 338 yuan/ton, or 7.03% compared with the previous trading day. According to the price monitoring of SunSirs, the average price of PTA spot market in China was 4,741 yuan/ton as of February 3, down 2.96% compared with the previous trading day, 27.98% year on year. In terms of traders, most of them will start to work after February 10, and some of them have made offers, but the trading atmosphere is light.

The market's worries about the future macro-economy and the delay of the downstream weaving enterprises' return to work have pushed down the PTA price. In addition, the PTA unit load is relatively high, which is in the stage of accumulation, and the overall accumulation pressure is increasing. In the downstream polyester market, the price of mainstream factories in Jiangsu and Zhejiang remained stable temporarily, among which polyester POY (150D/48F) was reported at 7,150-7,450 yuan/ton, which was the same as before the Spring Festival, and the terminal textile market is expected to be at least one week later than the resumption of construction in previous years.

Analysts from SunSirs believe that after the Lantern Festival, terminal demand recovers slowly, but PTA starts to operate stably, and the market will face greater pressure of accumulation. At the same time, the price of oil outside the holiday fell sharply, the cost side support collapsed, and the short-term PTA price is likely to fall further. With the improvement of demand next week, it is expected to form a certain support for the market, and the market will improve accordingly.

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