Back after the holidays, the polyester market is booming, and PTA’s performance is very eye-catching. Since the second half of last year, the PTA market has ushered in a boom cycle. The PTA market’s voice has become stronger. When the market opened during the Spring Festival, PTA continued the strong pattern of last year. While prices increased significantly, it still enjoyed high profits.
“Good start” quotation
Since the second half of last year, PTA’s profit performance has been relatively optimistic. In the early days of the Spring Festival, crude oil continued to plummet and capital fell sharply. PTA’s originally strong market was suppressed by negative news. While prices fell, profits also shrank significantly. However, during the Spring Festival, crude oil fluctuated and rebounded driven by good news. At the same time, when the market returned to the market after the holiday, market confidence improved, PTA regained lost ground, and profits were gradually expanding. It is reported that as of February 27, PTA cash flow has rebounded to a high of 400 yuan/ton, and PTA manufacturers are making money every day.
Cost support is strong, and PTA still has the motivation to rise
After several days of consecutive increases , The commodity market performed poorly on Wednesday (February 28). Under the pressure of the market, the PTA market entered a correction mode. So PTA has had a good start for several days. Will PTA be unable to rise next?
Under the strong support of crude oil, PX spot prices have now rebounded to a high in the past three years. Recently, the bullish atmosphere in the Asian PX market is still high. In March, the first round of PXACP advocacy prices were all announced: JX, Idemitsu reported US$1,030/ton; SK Chemical, S-oil, and Exxon Mobil reported US$1,020/ton CFR Asia, and finally PX ACP price reached US$975/ton. However, after March, Japan and South Korea have centralized maintenance plans for PX equipment, which has also strengthened expectations of tightening PX supply in Asia. Therefore, in the short term, PX bullishness will still dominate the market, and the cost of PTA will be relatively solid.
The peak of polyester maintenance has passed, and the supply of PTA has tightened again
Although at the end of last year, Tong The 2.2 million tons unit of Kunjiaxing Petrochemical and the 1.4 million tons unit of Reignwood Petrochemical were put into operation one after another. The effective PTA production capacity was released intensively before the Spring Festival. However, in fact, Yangzi Petrochemical is still in the parking stage in the short term, and the Tongkun unit is still unstable. In the later period, the Yisheng unit There is a maintenance plan, and the PTA market supply is still tight in March. At present, the terminal market is gradually resuming work, and March is the traditional peak season of the fabric market. With the release of demand, the upward momentum of PTA, which has low inventory, is still there.
Back from the Spring Festival holiday, the inventory accumulation in the polyester market is not obvious, and the inventory of POY and FDY products is even lower than the same period in previous years. At the beginning of the new year, for polyester upstream and downstream, neither PTA nor polyester filament manufacturers have a lot of inventory pressure. Coupled with good supply and demand expectations, the cost-driving effect of PTA is still obvious.
The current price of PTA is at a high level. For polyester manufacturers, one side is the high raw material price, and the other side is the loss market under high cost. High-priced PTA is now It’s like a hot potato in front of polyester manufacturers. Although PTA is still bullish, it is indeed a question worthy of serious consideration whether downstream PTA with high profits and high prices will buy it. </p
