Price trend

According to the price monitoring of SunSirs, the domestic PTA market fluctuated and fell. As of March 28, the average domestic PTA market price in East China was 6,227 RMB/ton, down 0.99% from the previous trading day and up 41.61% year-on-year. The main force of PTA futures 2205 closed at 6,078 and settled at 6,164, down 130, or 2.09%.

Analysis review

Last weekend, a PTA plant with an annual output of 2.2 million tons was restarted in Zhejiang, and the plant was shut down for about a week. The annual output of 1.25 million tons of PTA equipment in South China is scheduled for maintenance, and the operating rate of the PTA industry is around 74%. Under the background of the centralized and full realization of PTA overhaul in April, PTA continues the destocking cycle.

However, downstream polyester factories have plans to reduce production in April, and the market's concerns on the demand side have weakened. In addition, in terms of terminals, the start-up of Jiangsu and Zhejiang looms has dropped to about 65%, orders have fallen again, and the pressure on grey fabric inventory is high, and weaving companies have no willingness to speculatively replenish the inventory. In terms of price, the mainstream polyester filament factories in Jiangsu and Zhejiang have lowered their prices steadily, and some factories have lowered their prices by 100-200 RMB/ton.

Market outlook

SunSirs analysts believe that the current demand has always been suppressed. However, due to the strong contraction of the supply side of PTA, the epidemic has led to further tightening of local supply. At the same time, the strength of crude oil has given favorable support for the cost of the PTA market. Therefore, the overall price of PTA will still be volatile and strong.

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