Price trend

According to the commodity market analysis system of SunSirs, the domestic PTA market rebounded slightly last week (August 18-22), with the average PTA market price in East China at 4,771 RMB/ton, up 1.08% from the beginning of the week.

Analysis review

Crude oil prices were primarily volatile. As of the 21st, the settlement price of US WTI crude oil futures was $63.52 per barrel, and the settlement price of Brent crude oil futures was $67.67 per barrel. However, PTA's overall fundamentals improved, with slightly tight PX supply in the overseas market. The expected commissioning of new PTA plants both domestically and internationally was bolstering demand, leading to a gradual strengthening of PX prices. PTA plants in East and South China had been delayed in restarting or shutting down, optimizing their supply structure. Downstream polyester demand remained robust, with production and sales increasing. This, coupled with recent macroeconomic factors improving commodity sentiment, had contributed to a slight increase in PTA market prices.

Looking at the future market, in terms of PTA's own supply, under the continued low processing difference, the maintenance plan of PTA plants in August had increased, coupled with the unplanned maintenance of Hengli Huizhou PTA plant at the weekend, and the weak expectation of new adjustments to domestic PTA plants, the short-term supply side will narrow, and the overall industry operating rate will be around 71%.

As costs continued to rise, downstream polyester mills were also feeling more positive, with polyester filament industries following suit. However, downstream weaving companies were showing increasing resistance, focusing on replenishing inventory based on demand. Regarding end-use weaving, with tariffs easing since August, orders for autumn and winter fabrics and home textiles for export had gradually increased, with the operating rate of mainstream weaving industries in Jiangsu and Zhejiang regions near 52%.

Market outlook

Analysts of SunSirs believe that as of August 22, PTA supply and demand were experiencing a temporary improvement, and with the traditional peak demand season of September and October approaching, there were expectations for strong demand in September. The continued release of strong orders for early winter homewear and bedding fabrics, coupled with the peak shipment period for autumn clothing orders, will collectively drive a sustained recovery in the overall market sentiment. Furthermore, driven by macroeconomic factors and cost factors, PTA prices are expected to remain stronger in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.