SunSirs: Cost Benefits Boosted, PTA Maintained a Strong Adjustment

Price trend

According to the price monitoring of SunSirs, the domestic PTA market rebounded slightly. As of April 19, the average domestic PTA market price in East China was 6,288 RMB/ton, an increase of 0.63% from the previous trading day and a year-on-year increase of 36.87%. The main force of PTA futures 2209 closed at 6218, up 10, or 0.16%.

Analysis review

International crude oil futures prices maintained their upward trend, and PTA cost support strengthened. On April 18, the settlement price of the main U.S. WTI crude oil futures contract was reported at 108.21 US dollars per barrel, an increase of 1.26 US dollars International crude oil futures prices maintained their upward trend, and PTA cost support strengthened. On April 18, the settlement price of the main U.S. WTI crude oil futures contract was reported at 108.21 US dollars per barrel, an increase of 1.26 US dollars or 1.18%; the settlement price of the main contract of Brent crude oil futures was reported at 113.16 US dollars per barrel, an increase of 1.46 US dollars or 1.31%. With the Russian-Ukrainian crisis tightening expectations for future crude oil supply, the news of production disruptions in Libya made the market worse, and oil prices were significantly supported.

In terms of PTA devices, maintenance, restart, and load reduction coexist. The current industry start-up was around 67%, and the spot supply continued to tighten.

The downstream polyester market followed the rise of raw materials, and the offers of some mainstream factories in some Jiangsu and Zhejiang regions rose steadily. However, the textile terminal was affected by the epidemic and other factors, and the weaving load dropped sharply. Due to the start-up load of polyester, the demand for PTA continued to drop to around 77%.

Market outlook

SunSirs’ analysts believe that the price of crude oil has formed a positive support for the cost of PTA, but the downstream polyester demand for PTA has weakened, and PTA is in a stalemate between cost support and demand decline. It is expected that in the short term, under the boost of PTA costs, the adjustment will remain on the strong side.

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