SunSirs--China Commodity Data Group

Member ID: password: Join Now!
Commodity News

SunSirs: Downstream Price Increases Support the Market, and China's PTA Market Rises Slightly

October 14 2020 08:09:35     SunSirs (Linda)

According to SunSirs price monitoring, the domestic PTA spot market price maintained a slight increase on October 12. The average spot market price of the day was 3,357 yuan/ton, a 0.99% increase from the previous trading day and a year-on-year decrease of 35.08%. PTA main futures (2101) closed up, and the main futures closed at 3,480, up 18 from the previous trading day, or 0.52%.

Terminal demand has recovered, and the start-up load of looms in Jiangsu and Zhejiang ushered in a phased high. As of October 10, the start-up load was above 84%, an increase of 6.5% over the same period last year. The price increase of downstream polyester factories supported the market with high production and sales, which boosted the PTA market price and led to a rebound in futures spot trading volume. Polyester factories continue to increase prices. Major polyester filament yarn factories in Jiangsu and Zhejiang raised their production and sales by RMB 50-100/ton. The average production and sales are 120%-140%, and the production and sales of some better factories can reach 200%. On the first day of listing of polyester staple fiber, all cargo contracts closed the daily limit. The cotton in the same cotton spinning industry chain once hit the daily limit and eventually closed more than 5%. The futures price of cotton yarn also rarely rose by more than 4%.

PTA's own equipment is also supported. Yizheng Chemical Fiber's 650,000-ton PTA equipment began to reduce its load on October 12, and it is scheduled to be overhauled for 18 days. Sichuan Energy Investment plans to maintain 1 million tons on October 15 for two weeks. The 2.2 million tons of Hanbang Petrochemical and 1.2 million tons of Zhongtai Petrochemical will be shut down at the end of September for 30 days and 60 days.
SunSirs analysts believe that the current market is in a long-short news game, and PTA is still under the pressure of capacity expansion, and the launch of new capacity is imminent, restraining the market rebound. However, due to the recent maintenance of equipment and the improvement in downstream demand of the terminal, it is expected that the PTA market will maintain a slight increase in the short term.

If you have any questions, please feel free to contact SunSirs with

Rubber & plastics
Non-ferrous metals
Building materials
Agricultural & sideline products