SunSirs: Plant Production Cuts and more Maintenance, PTA Prices in the Chinese Market Rebound Slightly

On December 13, the domestic PTA market rebounded slightly. The average market price in East China was 4,712 yuan/ton, up 1.20% from the previous day and up 34.68% year-on-year. The main force of PTA futures 2205 closed 4766 settlement 4716, up 56, or 1.19%.

The market's concerns about the mutated strain Omicron's impact on the global economy and fuel demand eased, and the Organization of the Petroleum Exporting Countries and its allies (OPEC+) controlled production. It is unlikely that Iranian oil will return to the international market in the near future. The oil market remains tightly balanced, and oil prices are supported. On December 10, international oil prices rose. The main contract settlement price of WTI crude oil futures in the United States was reported at US$71.67/barrel, an increase of 0.73 US dollars or 1.03%, and the main contract settlement price of Brent crude oil futures was reported at US$75.15/barrel, an increase of US$0.73 or 0.98. %.

The polyester market in Jiangsu and Zhejiang is flat, the price still maintains a downward trend, the overall production and sales are average, and the operating load is around 80%. Most warp knitting factories are affected by the lack of terminal orders, and the low-sale inventory of grey fabrics is high. And I haven't heard of local best-selling fabrics, grey fabric inventory is still up, and grey fabrics are squeezing cash flow.

The increase in production cuts and maintenance of PTA plants, and the increase in crude oil has increased the support for PTA costs. However, the weakening of terminal orders has suppressed the enthusiasm for loom production, and the demand side only purchases raw materials to meet rigid demand. Therefore, in the short term, PTA prices will continue to rise slightly.

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