SunSirs: International Oil Prices Plummeted, PTA in Chinese Market Fluctuated and Weakened

On November 11, China's PTA market dropped slightly, and the average spot market price was 4,994 yuan/ton, down 1.77% from the previous day and up 56.55% year-on-year. The main force of PTA futures 2201 closed at 5014, down 102, or 1.99%.

In terms of equipment, the 2.2 million tons of Hengli Dalian started maintenance for about 20 days on November 5, the 1.5 million tons of Honggang Petrochemical plans to restart this weekend, and the 2.5 million tons of Baihong plans to start maintenance for 3 weeks on December 1, Ineos 110 The 10,000-ton plant is scheduled to be overhauled for 2 weeks at the end of December, and the current industry operating rate remains above 79%.

On November 10, international oil prices plummeted. The settlement price of the main US WTI crude oil futures contract was reported at US$81.93/barrel, a decrease of US$2.81 or 3.3%, and the settlement price of the main contract of Brent crude oil futures was reported at US$83.43/barrel, an increase of US$2.14. 2.5%. At the macro level, the dollar's ​​surge has suppressed the valuation of oil prices. In addition, in the context of inflation expectations, the Biden administration in the United States is looking for ways to reduce energy prices, and oil prices are under short-term pressure.

The polyester market in the lower reaches of Jiangsu and Zhejiang is dull, with poor production and sales, and low enthusiasm for PTA procurement. The operating rate of the polyester industry is around 80%. Purchasing is relatively cautious, mainly maintaining rigid demand procurement. The comprehensive operating rate of Jiangsu and Zhejiang looms is about 65%, with no significant changes.

The sharp drop in international crude oil prices has weakened the PTA cost support, and demand has not followed up enough. The accumulated pressure on the domestic PTA market continues to ferment, and the short-term PTA price will continue to fluctuate and run weakly.

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