Newsletter summary
On April 27th, the average market price of PTA in East China was 5940 yuan / ton, down 0% from the beginning of the month.Wwwpowerball.89%. In April, PTA devices were overhauled and restarted alternately, and the industry's operating rate rebounded to more than 81%. Crude oil prices fluctuate, Asian PX supply slows, downstream polyester inventory increases, loom operating rate drops, and the PTA market is expected to rise narrowly in May.
Text of news flash
[PTA prices fell slightly in April the market is well supplied] PTA prices fell slightly in April. As of April 26, the average market price in eastern China was 5940 yuan / ton, down 0.89% from the beginning of the month. At the beginning of the month, international crude oil rose to a phased high, and some manufacturers announced the maintenance plan for PTA devices, boosting the PTA market. Subsequently, the weakening of cost support superimposed strong supply and weak demand, price shocks fell. In April, the domestic PTA plant experienced a series of changes. Jiatong Energy, Yizheng Chemical Fiber, Sichuan Energy Chemical, Fuhai Chuang, Hengli Huizhou and other enterprises all have varying degrees.WwwpowerballThe device is overhauled. At present, some PTA plants have been restarted, new capacity to produce qualified products has made an adequate supply of PTA goods, and industry starts have rebounded slightly to more than 81 per cent. There is a risk of conflict escalation in the cost-side crude oil market, and the price fluctuates widely. As of April 25, the settlement price of the main contract of WTI crude oil futures was 83.57 US dollars per barrel, while that of Brent crude oil futures was 87.77 US dollars per barrel. Some PX devices in Asia have parking plans, and the overall supply level continues to slow down, which still supports the cost of PTA. Downstream polyester factories consume more inventory and long supply of goods, the replenishment intention is low, and the spot demand for PTA is generally supported. The demand for "gold, silver and silver" in the terminal textile industry was lower than expected, and the downstream integrated looms fell to around 73% as of April 26. Weaving enterprises mostly take rigid demand to fill positions, polyester factory inventory continues to grow, giving priority to profit delivery. At the end of the month, the market trading atmosphere is light, generally lack of confidence in the future. Textile and clothing exports were lower than expected, foreign trade demand did not rebound on a large scale, and the amount of exports decreased compared with the same period last year. According to data from the General Administration of Customs, China's textile and clothing exports totaled US $20.81 billion in March, up 17.2% from the previous month and down 21.1% from the same period last year. Textile and clothing exports totaled US $65.91 billion in the first quarter of 2024, up 2.0% from the same period last year. Analysts believe that short-term crude oil prices may maintain high volatility, supporting the cost of PTA. There are still a lot of plant maintenance plans at the PTA plant in May, and the market is expected to increase the reduction of some supply in the future. However, the demand side will be a drag, is about to enter the traditional textile off-season cycle, there is a reduction in orders downstream, the choice of terminal factory procurement is more cautious. Therefore, taken together, the PTA market may rise narrowly in May.
