According to the price monitoring of the business agency, the current price of PTA continued to fall today (October 28). The average price in the domestic market was 5150 yuan / ton, down 3.01% from the previous day, up 52.52% year-on-year. The main futures 2201 closed at 5204, down 168, down 3.13%.

In terms of supply, the PTA plant with an annual output of 1 million tons of chuanneng chemical stopped in the evening of October 26, the restart time is to be determined, and the industrial start-up load is reduced to near 82%. However, the sufficient market supply has tired the warehouse. The delivery of polyester plants in the downstream is mostly hard demand, and the overall trading atmosphere is light.

The high crude oil price fell back, which lacked support for PTA market. As of October 27, the settlement price of the main contract of WTI crude oil futures in the United States was US $82.66/barrel, and the settlement price of the main contract of Brent crude oil futures was US $83.87/barrel. A report released by the US Energy Information Administration (EIA) on Wednesday showed that US crude oil inventories increased more than expected last week. In addition, there are rumors that Iran’s nuclear negotiations may be restarted, which is bad for the oil market.

In terms of downstream demand, the impact of power rationing still exists in the near future, and the polyester operation has not been significantly improved and maintained below 80%. The start-up of terminal textile enterprises remained low, the raw material inventory was sufficient, the consumption was relatively slow, the mood for raw material procurement was poor, the overall mentality was cautious, and the prices of mainstream polyester factories in Jiangsu and Zhejiang fell steadily.

Business analysts believe that the current downstream demand is still weak, and the PTA market is weakening due to the pressure of accumulation pattern. At the same time, the adjustment of high crude oil shock has limited support for the PTA market cost, and the market sentiment is pessimistic. It is expected that the PTA price will operate in a narrow range and weak in a short time. In the future, we still need to pay attention to the trend of international oil prices, maintenance of our own devices and improvement of demand.