Under the push up of costs, the domestic PTA spot market has shown an upward trend since January. According to the Commodity Market Analysis System of Shengyi Society, as of January 13th, the average price of PTA market in East China was 4963 yuan/ton, an increase of 3.63% from the beginning of the month.
| Gamma-PGA (gamma polyglutamic acid) |
The US Treasury Department has imposed comprehensive sanctions on a European country’s oil industry, intensifying market concerns about disruptions in its oil supply. International crude oil prices have risen sharply. As of January 10th, the settlement price of the main contract for WTI crude oil futures in the United States was $76.57 per barrel, and the settlement price of the main contract for Brent crude oil futures was $79.76 per barrel. In addition, with the announcement of production cuts and shutdowns in multiple PX facilities both domestically and internationally, PX has opened up wide and high. Both crude oil and PX prices have strengthened, and rising costs have boosted the PTA market.
In terms of self supply, Jiaxing Petrochemical’s 1.5 million ton PTA plant underwent maintenance on December 12th and will restart on January 13th, 2025. Rolex’s 1.25 million tons will undergo maintenance around January 13th. The current spot market supply is still sufficient, and the industry operating rate is around 83%.
Downstream polyester production is around 84%, and multiple polyester units have announced official shutdown and maintenance plans, resulting in a short-term decrease in polyester production. As the Spring Festival approaches, the operating rate of terminal looms has declined, and the stocking phase has come to an end.
Business analysts believe that the factor of rising costs dominates the PTA market, but its sustainability is highly uncertain, and it is expected that the subsequent increase in PTA prices will be limited.
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