Rising cost boosts PTA price

The crude oil continued to rise, and the PTA price continued to rise driven by the cost. According to the monitoring of the Business News Agency, the domestic PTA market continued to rise. As of January 13, the average price of the East China market was 5535 yuan/ton, up 2.96% from the previous day, up 6.18% year on year.

Recently, the number of PTA devices restarted has increased, and the supply of PTA has increased. At present, the domestic PTA operating rate has risen to 68%. The 1 million ton unit of Chuaneng Chemical started to restart on January 9. In addition, the 2 million ton unit of Yisheng Ningbo is under shutdown, and it is planned to restart at the end of January.

Influenced by the optimistic expectation of China’s demand outlook and the unexpected drop in consumer prices in the United States in December, the Federal Reserve’s tightening monetary policy slowed down and oil prices gained support. As of January 12, the settlement price of the main contract of WTI crude oil futures in the United States was US $78.39/barrel, and the settlement price of the main contract of Brent crude oil futures was US $84.03/barrel.

With the approaching of the Lunar New Year, the downstream terminal weaving was centralized for holiday, and the start of work fell significantly into the shutdown stage, and the comprehensive starting rate of Jiangsu and Zhejiang looms fell below 10%. Textile enterprises are not willing to prepare goods before the festival, and weaving orders are expected to remain weak after the year.

Analysts from the Business Agency believe that the current PTA multiple sets of maintenance devices have restarted and the operating rate has rebounded, and the supply has increased. Under the traditional off-season, demand is sluggish, accelerating the accumulation of inventory. The cost center is rising, but the supply and demand are not driven. It is expected that the short-term PTA price rise will be limited.