With cost support and tight supply, PTA prices remained upward in May

According to the price monitoring of the business club, the domestic PTA market remained volatile and upward in May, at a high level in three years. As of May 31, the average market price was 6900 yuan / ton, up 7.37% from the beginning of the month and 46.97% year-on-year. The favorable cost side pushed up the PTA price. In addition, PTA production suffered losses, some units maintained production reduction or maintenance status, and the supply side decreased. Specifically:

 

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As of May 30, the settlement price of the main contract of Brent crude oil futures was $117.60/barrel. The Brent contract in July exceeded $120, the highest level in more than two months. The market watched the implementation of the European Union’s oil embargo agreement on Russia. The tightening of supply and the expectation of the peak driving season in the United States significantly supported the oil price.

 

Recently, the operating rate of PX units in Asia has declined. On the whole, the operating rate of paraxylene units in Asia is less than 60%, the supply of PX goods in Asia is tight, and the closing price of PX in the outer market has risen. As of the 27th, the closing price was $1264-1266 / T FOB Korea and $1292-1294 / T CFR China. This led to a sharp rise in the domestic market price of p-xylene. By the end of the month, the domestic ex factory price of p-xylene was 9900 yuan / ton, up 11.24% compared with the price of 8900 yuan / ton at the beginning of the month, up 54.69% year-on-year.

 

In terms of supply, under the low processing cost, PTA plant has been overhauled and reduced its load more. The current operating load has dropped below 68%, and the spot liquidity in the market has been tightened. In terms of inventory, PTA social inventory fell back to 2.74 million tons.

 

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Affected by the boost of raw materials, the downstream polyester market prices rose, among which the polyester filament products rose by 6%-11%. However, at present, the finished product inventory of the polyester factory is on the high side. At the same time, there is a resistance to high priced raw materials. The overall start-up is slow, and the start-up of the industry remains around 78%. At the same time, the terminal market is in the traditional off-season, and the comprehensive startup rate of Jiangsu and Zhejiang looms is below 60%, which is a drag on the PTA demand side.

 

Business analysts believe that crude oil and PX fluctuate at a high level, and the cost remains high, which will still form a positive support for the cost side of PTA. Under low processing cost, PTA unit load will also maintain low-level operation. The performance of the terminal market is still weak, polyester production and sales are difficult to improve, and the sluggish demand has brought suppression. Generally speaking, PTA remained high and volatile in June under the support of costs.

http://www.lubonchem.com/

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