SunSirs: PTA Price Continues to Decline after Putting More Devices into Operation

SunSirs: Sep 11

According to SunSirs’ price monitoring, the PTA price in the domestic spot market drops slightly today (Sep 11), it is 0.61% lower than that of the last trading day and 43.52% lower compared with the same period of the previous year. The closing price of TA2001 is 5,122RMB/t, 2.10% (110RMB/t) lower than that of Sep 10. 

With the restart of the 350,000 tons PTA device in Yizheng on Sep 10, the load rises to a high of 97%. The worries from the supply side increase, and the purchasing atmosphere remains poor. The dominated traders are buyer, sporadic factories follow up.

In the raw material market, the closing price of Asia's PXCFR China is 791USD/t, 6USD higher than that of the previous trading day. Affected well by the rising outer disc, the domestic price of PX is around 6,600RMB/t. Hainan Refinery and Chemical Co., Ltd. planned to put the new PX unit (1 million tons/year) into commission in late September. Hengyi Wenlai’s 1.5 million tons PX device would enter the commissioning stage in the third quarter. Zhejiang Petrochemical’s 4 million tons PX device would enter the commissioning stage in the fourth quarter.

Downstream polyester’s start-up load was near 90%. Many investors still remain cautious and are staying away from the market. The polyester quotation in Jiangsu and Zhejiang’s mainstream factories remain temporarily stable. The price of polyester POY (150D/48F) is 7,700-8,050RMB/t, the price of DTY (150D/48F low elasticity) is 9,200-9,350RMB/t and the price of FDY (150D/96F) is 7,700-8,000RMB/t. Some parts of the terminal orders have rebounded. The overall operating rate of looms in Jiangsu and Zhejiang is 80%. However, due to the macroeconomic pressure at home and abroad, the demand of textile and garment industry is significantly weaker than that of the previous years.

The analysist of Sunsirs believes that putting more devices into operation would give pressure to the supply side. The drive of the cost side is not strong, the follow-up of the downstream terminal orders is weak, PTA is expected to continue to decrease in the short term. 

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