Price trend

According to the price monitoring of SunSirs, the domestic PTA market fell significantly this week (June 20-24). As of June 24, the domestic PTA market was at 6,634 RMB/ton, down 7.86% from the beginning of the week and up 33.88% year-on-year.

Analysis review

International oil prices plummeted, and the market was worried that the Federal Reserve would raise interest rates sharply, which may plunge the US economy into recession and suppress fuel demand. International crude oil futures prices continued to fall. As of June 23, the settlement price of the main U.S. WTI crude oil futures contract was quoted at 104.27 US dollars per barrel, and the settlement price of the main Brent crude oil futures contract was quoted at 110.05 US dollars per barrel.

On the supply side, the load of the device has been gradually increased, and the supply has gradually increased. Yadong Petrochemical's 700,000-ton plant started to stop on June 18 and restarted on June 24. Yisheng Ningbo's 2.2 million-ton unit was overhauled around June 12, and it is planned to restart in early July. The industry operating rate was around 77%.

In terms of demand, the company's new orders were not good, the procurement of raw materials was mainly based on rigid demand, and the production and sales of polyester were not prosperous. The terminal orders were general, and the polyester link accumulated a high inventory of finished products, which limited the room for improvement in the polyester operating rate. The operating rate of terminal looms dropped slightly to below 57%.

Market outlook

SunSirs analysts believe that the current cost support is weakening, and the supply of PTA exceeds the demand. In the short term, the price of PTA will continue to fluctuate and be weak.

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