Bad Trading Atmosphere And Weak PTA

According to the price monitoring of business associations, the price of domestic PTA spot market fell slightly in November 12th, and the average price of the market was 4757 yuan / ton, down 0.44% from the previous trading day, down 30.69% from the same period last year. Futures market, PTA main futures shock adjustment, to close the main futures (2001) closed at 4690 yuan / ton, compared with the previous trading day rose 2 yuan / ton, or 0.04%. Intra day trading volume increased from 52 thousand and 100 to 1 million 187 thousand and 400 hands, positions increased 6820 to 1 million 705 thousand and 300 hands. The spot market has a poor trading atmosphere. The purchase is dominated by factories and traders. The PTA processing fee is again under pressure and further compressed to 500 yuan / ton. Short term Jiaxing petrochemical and Ya Dong petrochemical plant will enter the overhaul.

Due to the market's worries over oversupply of crude oil, the international oil price shock dropped. As of November 11th, the closing price of the international crude oil WTI main futures was 56.86 US dollars / barrel, down 0.38 US dollars per barrel compared with the previous day, and the closing price of BRENT main futures was 62.18 US dollars / barrel, down 0.33 US dollars / barrel compared with the previous day. The closing price of PX market in Asia is 762 US dollars / ton FOB Korea and 782 US dollars / ton CFR China, down 5 US dollars / ton compared with the previous day. Downstream affected by raw materials, the market of polyester filament Market in Jiangsu and Zhejiang provinces is stable and wait-and-see. The prices of mainstream factories have dropped steadily, and some of them have dropped 50-100 yuan tons, of which POY150D/48F reported 6750-7200 yuan / ton. Judging from the weaving industry, some factories are now taking orders according to their orders, and some conventional products are still slow in inventory digestion. The return period is lengthened, especially at the end of the year. The cost of financing is still high, and the problems such as the occupation of funds and the arrears of funds are outstanding.

Xia Ting, a business analyst, believes that the impact of the PTA device repair will be beneficial to the market in the short term. However, the price of the PTA spot market will still be weak mainly due to the expected pressure on the new capacity and the weak demand side.