SunSirs: Good Cost Boosts, PTA Price in China Fluctuates Upward

On November 9th, the domestic PTA market continued to rebound slightly. The average spot market price was 5,031 yuan/ton, an increase of 0.16% from the previous day and a year-on-year increase of 61.31%. The main PTA futures 2201 closed at 5078, up 28, or 0.55%.

In terms of equipment, Hengli Dalian's 2.2 million tons started maintenance for about 20 days on November 5, Honggang Petrochemical's 1.5 million tons plant is scheduled to restart in mid-November, and Biocer’s 2.5 million tons plans to start maintenance for three weeks on December 1. Ineos The 1.1 million ton plant is scheduled to be overhauled for two weeks at the end of December, and the current industry operating rate remains above 79%.

The continuous recovery of the global economy supports energy demand and the supply performance is insufficient. International crude oil prices are still running at a high level. On November 8, the settlement price of the main US WTI crude oil futures contract was US$81.93/barrel, and the settlement price of the main Brent crude oil futures contract was reported. US$83.43/barrel.

The polyester market in the lower reaches of Jiangsu and Zhejiang is flat, with obvious wait-and-see sentiment, and some factories have made purchases. There are not many new orders, and the production of pre-orders is maintained, and the industry operating rate is lowered to below 80%. From the perspective of texturing, weaving and other links, the policy-related power curtailment in Jiangsu and Zhejiang has been relaxed, and the operating rate will moderately rise by more than 65%, but it is still difficult to return to the previous high.

Although the wait-and-see atmosphere of downstream factories is increasing and the purchasing enthusiasm is not high, the PTA spot is sufficient. However, boosted by the favorable cost-side, PTA equipment maintenance is expected, and weather conditions affect northern port logistics, short-term PTA prices will maintain a narrow increase.

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