According to the Commodity Market Analysis System of Shengyi Society, the domestic PTA market experienced a slight rebound today (August 13th), with the average spot price of PTA in East China at 5610 yuan/ton, up 0.20% from the previous trading day. A mainstream PTA factory has announced a maintenance plan for its facilities, and in addition, a 2.2 million ton PTA plant in East China is scheduled to shut down unexpectedly. Coupled with strong fluctuations in international crude oil prices, this has strengthened cost support and boosted the PTA market. Specifically, let’s take a look:

Two sets of PTA plants with a total capacity of 4.7 million tons are scheduled for maintenance in the Northeast region, with one set of 2.5 million tons PTA plant scheduled for maintenance on August 17th; A 2.2 million ton PTA plant in East China was unexpectedly shut down on August 12th, while another 1.2 million ton plant is scheduled for maintenance in September. The planned maintenance and short shutdown of the equipment will have a certain positive impact on the PTA market. At present, the operating rate of the PTA industry in China is around 83%, and the supply of PTA has decreased in the short term.

Meanwhile, on August 12th, international crude oil futures rose sharply, with the settlement price of the main contract of WTI crude oil futures in the United States at $80.06 per barrel, an increase of $3.22 or 4.2%. The settlement price of the main Brent crude oil futures contract was $82.30 per barrel, an increase of $2.64 or 3.3%. The geopolitical situation remains tense, with international crude oil experiencing strong fluctuations, which still provides support for PTA costs.

Downstream polyester production has slightly rebounded, but it is still at a low level. In addition, there are rumors in the market that polyester factories may increase production cuts. Since August, with continuous high temperatures and off peak electricity policies, most terminal textile enterprises have maintained low operating rates. Currently, the operating rate of weaving machines in Jiangsu and Zhejiang has dropped to around 60%. The weak demand for domestic and foreign textile products remains, and the progress of autumn and winter orders is slow, which is not as expected. As a result, the operating rate will further decline. If there is no positive stimulus in the short term, the overall demand for PTA will remain weak.

Business analysts believe that the upstream cost side still provides support for PTA costs, but downstream polyester procurement is sluggish, and the willingness to stock up on raw materials is not high. It is expected that PTA prices will not have enough momentum to continue rising.