SunSirs, Sep 3

According to SunSirs’ price monitoring, the PTA prices in the domestic spot market rose slight today (Sep 3). The average market price was 5,193RMB/t, 0.17% higher than that of the last trading day, but 44.46% lower than that of the previous year. The main futures seesawed and rebounded, the closing price of 2001 was 5,116RMB/t, 24RMB/t higher than that of Sep 2, the increase was 0.47%.

Hengli Petrochemical, a mainstream factory producing PTA, scheduled the inspection and repair No.1 line in the middle of Sep. The No.1 line can produce 2.2 million tons per year and the maintenance time would be around 15 days. The market was boosted by this news and the current operating capacity maintains at 94%. But the planned maintenance had relatively limited support for the market rebound, the atmosphere of transactions got down, traders were the main buyers, only a few polyester factories bought it. On Sep 2, the closing price of Asia PX (CFR China) was 778USD/t, 10USD/t lower than that of the last trading day. The operating capacity of downstream polyester decreased to 89%. The profit of terminal weaving and texturing enterprises was not optimistic, the general operation rate of looms was around 78% in Jiangsu and Zhejiang, the atmosphere of purchasing and stocking was general. In Jiangsu and Zhejiang, the prices of mainstream polyester factories were mainly stable，the prices of the isolated POY decreased 100RMB/t. At present, the market price range of POY150D/48F is 7,600-7,950RMB/t.

An analyst of SunSirs, believed that despite the good news of big factories’ maintenance schedule, it’s expected PTA prices would continue to be in Weak Position in the short term because of the ample supply of goods in spot market and the pessimism in raw materials and demands.