Price trend  

According to the Commodity Market Analysis System of RMB/ton, the domestic PTMEG price haf been operating weakly this week. As of February 28th, the PTMEG price was 21,333.33 RMB/ton, a year-on-year decrease of 0.78%.

Analysis review

Upstream

The domestic operating rate of BDO was around 72%. According to the known maintenance plan, BDO will start operating at around 60% load in March. Under the maintenance plan of multiple manufacturers, the supply hads significantly decreased, while demand had gradually rebounded to pre holiday normal levels downstream of the terminal, and the market demand is expected to warm up in the later stage.

Demand side

The main downstream spandex pre shutdown device  was restarted after the holiday. The downstream weaving industry was fully resuming work and production, coupled with the expected peak season demand of "Gold March and silver April". There was an expectation of an increase in demand for raw materials in other downstream PU and TPU sectors after the resumption of production downstream of the terminal. The demand was gradually recovering, and under the pressure of cost, PTMEG manufacturers had a strong attitude towards stabilizing prices.

Market outlook

The raw material BDO operated weakly and steadily, with weak cost support. Upstream planned maintenance results in reduced supply. The demand side is expected to return to pre holiday normal levels with an upward trend. Overall, the price of PTMEG may be slightly stronger.

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