Supply And Demand Pressures Remain PTA, The Market Will Continue To Weaken.

According to the price monitoring of business associations, the price of domestic PTA spot market maintained a slight decline in April 20th, and the spot market average price was 3314 yuan / ton, down 0.90% from the previous trading day, down 49.42% from the same period last year. Futures market to close main futures closed at 3412, down 64 from the previous trading day, or 1.84%.

At present, due to the concentrated volume of transactions at the end of March, the supply of spot negotiable goods is full, and PTA continues to maintain a high level of over 92%, and the supply is relatively adequate. In terms of installations, the 340 thousand ton PTA plant of Tianjin petrochemical company was overhauled in April 17th and planned to be overhauled for 1 months. The 600 thousand ton PTA unit of Hon Bang petrochemical plant was reheated at the end of the week. The 500 thousand ton PTA plant on line 2 of Ya Dong petrochemical, Taiwan, is being overhauled today (April 20th) and planned to be overhauled to July.

Crude oil market, due to the lower production volume of OPEC+ than expected last week, but it is not enough to offset the sudden drop in demand caused by public safety and health prevention and control. The crude oil rally is blocked and dropped. At the same time, with the sharp increase in US crude oil inventories and the average daily demand of global oil will drop by 9 million 300 thousand barrels, the cost of oil and air oil market is insufficient. However, driven by the surge in market demand for global masks, the downstream production and sales of polyester staple fiber and polyester chips have been warmer, and PTA has been supported by demand. At the same time, after the production and sales volume at the beginning of the month, the stock pressure of polyester factories has been alleviated, and the polyester profit has maintained relatively good level at present, and the maintenance plan of the equipment has been reduced, and the polyester start-up load has been maintained near 83%. However, the overall turnover of the downstream polyester filament market continued to be light. The price of the mainstream polyester factories in Jiangsu and Zhejiang provinces remained stable and the current price of polyester POY150D/48F was 5050-5350 yuan / ton.

Xia Ting, a business analyst, believes that the cost side support of the crude oil slump has weakened. The mainstream polyester factories in the lower reaches of Jiangsu and Zhejiang are temporarily stable, and the overall production and sales performance is weak. The purchasing mood of weaving and bomb purchasing is still not high, and there is a possibility of further downgrades in the terminal link operation. Demand is cooling, PTA supply continues to increase, supply and demand pressures remain, and PTA market is expected to continue to weaken.