Since the beginning of this week, the domestic PTA spot market has seen a slight upward trend, with relatively strong raw materials boosting PTA prices. According to the Commodity Market Analysis System of Shengyi Society, as of December 12th, the average price of PTA market in East China was 4734 yuan/ton, an increase of 1.14% from the beginning of the week.
| Gamma-PGA (gamma polyglutamic acid) |
Although OPEC has lowered its global demand forecast for five consecutive months in its monthly report, the decrease in US crude oil inventories has been offset by an increase in refined oil inventories. However, China’s boost to the economy may increase oil demand, and European and American crude oil futures have risen for the third consecutive day. As of December 11th, the settlement price of the main contract for WTI crude oil futures in the United States was $70.29 per barrel, and the settlement price of the main contract for Brent crude oil futures was $73.52 per barrel.
Self supplied, the 1.1 million ton PTA plant of Zhuhai Ineos underwent maintenance for over 20 days in early December. The total production capacity of PTA at Jiaxing Petrochemical is 3.7 million tons per year, of which the 1 # 1.5 million ton units underwent maintenance on December 12th, and the restart time is yet to be determined. The supply has slightly decreased, and the PTA industry is operating at around 88%.
The trading atmosphere for cold resistant fabrics at downstream textile terminals is still good, and the atmosphere for inquiries about some spring orders is good. Intermediaries and traders only stock up on demand, and the delivery of domestic and foreign trade orders is coming to an end. As of December 11th, the comprehensive operating rate of chemical fiber weaving in Jiangsu and Zhejiang regions is less than 69%.
Looking ahead, crude oil prices have risen to their highest point of the week, providing stronger support for PTA costs. Under partial device maintenance, domestic PTA supply remains high. We are concerned about the progress of Dushan Energy’s 2.7 million ton PTA new device scheduled to start production in mid December next week. With the impact of the off-season consumption, it is expected that the downstream transaction atmosphere will further weaken, and there is an expectation of weakened demand. Overall, without sustained positive drivers, PTA prices will fluctuate weakly and adjust in the short term.
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