PTA Enters The Stage Of Stock Capacity Game

As of the first quarter of 2016, Xinbang Petrochemical's new capacity of 2 million 200 thousand tons of PTA was tested and the total capacity of domestic PTA expanded to 48 million 800 thousand tons, of which the total capacity of PTA involved in PTA production was 13 million 650 thousand tons, or 28% of total capacity due to bankruptcy and bankruptcy.

In the stock capacity, Yisheng, Hengli and Zhuhai BP rank the top three, accounting for 61.8%, of which Yisheng and Hengli Petrochemical are two factories.

The proportion of stock production capacity is nearly 55%.

As of the end of March, the PTA plant operation rate increased to 75%. After deducting the long-term closure of the small and medium sized PTA plants, the main domestic PTA factories were basically running at full capacity, which brought great pressure to the PTA market. Rough statistics showed that by the end of March, the total inventory of domestic PTA society would have accumulated to a high level near 2 million 200 thousand tons, higher than that of the same period last year.

As of March 31st, the total amount of PTA warehouse receipts plus effective forecasts has accumulated to 133 thousand and 600. The large backlog of stocks has prompted the cash flow of PTA to deteriorate to a very low level of 200 yuan / ton at the same time. Recently, with the action of a series of cash flow in domestic PTA factories, the cash flow of PTA factory has risen to a normal level of 500 yuan / ton.

However, we believe that in terms of the current supply and demand balance, PTA is still relatively loose compared with the PX supply and demand side of the two quarter maintenance operation. This asymmetrical supply and demand node will continue to suppress the cash flow of the PTA factory at a low level. In the two quarter, the PTA factory will have further parking inspection actions to improve its cash flow level, and PTA is expected to enter.

In the cycle.

For now,

The 1 million 200 thousand tonnes of Taiwan chemical plant is scheduled to stop for 3 weeks in early April, when the contract supply is reduced. The new 2 million 200 thousand ton PTA unit of Han Bang petrochemical company has been suspended for restart because of the failure of the restart. All the contract products were cancelled in April. The first largest plant in the universe, Yisheng Petrochemical Company, also supplied 10% of the contracted cargo in April, and the PTA factory's action was inferior to the cash flow recovery.