On April 22nd local time, US President Trump announced at a White House press conference that the high tariffs imposed on goods from China will be significantly reduced. The trade friction caused by tariff issues has eased, and market sentiment has improved, providing some support for oil prices.

On April 22nd, international crude oil futures rose. The settlement price of the main contract for WTI crude oil futures in the United States was 63.67 US dollars per barrel, an increase of 1.26 US dollars per barrel or 2.0%. The settlement price of the main Brent crude oil futures contract was 67.44 US dollars per barrel, an increase of 1.18 US dollars per barrel or 1.8%.

Under the boost of the crude oil market, the average market price in East China as of April 23 was 4,366 RMB/ton, up 1.17% from the previous trading day. There has been little change in PTA load recently. The Yishanda Chemical, which was originally planned to restart last week with 3.75 million tons, will restart 50% on April 20th. Later, Hengli Huizhou's 2 # 2.5 million tons planned to undergo maintenance on April 28th.

Under the influence of tariffs, the market fluctuates greatly, and downstream polyester factories were cautious in purchasing goods, mainly focusing on digesting inventory. The production of weaving machines in Jiangsu and Zhejiang provinces continued to decline by around 60%, and the export of terminal textiles and services was hindered due to the disturbance of tariff policies, which has a negative feedback impact on the upstream.

Market outlook

SunSirs analysts believe that there is some support on the cost side, but the demand side is insufficient and the purchasing enthusiasm is limited, so mostly tend to adopt a wait-and-see attitude. It is expected that PTA prices will fluctuate with crude oil in the short term.

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