Weekly Report: PTA (Aug. 15-Aug. 19)

PTA futures surged this week, which has broken ten thousand Yuan by now. Ended by this Friday, main force contract 1201 closed up to 10,010 Yuan, dramatically increased 376 Yuan compared with last Friday, up by 3.9%.

For spot goods, PTA price steadily increased this week. Ended by this Friday, and compared with last Friday, the discussions in the domestic market increased 200 Yuan to 9,900 Yuan; the practical discussions of Taiwan cargo increased 20 dollars to 1270 dollars; the practical negotiated price of Korean cargo increased 25 dollars to 1,255 dollars.

The futures price of crude oil is generally downtrend this week. The close price of September futures accumulatively dropped 3.34 dollars to 82.38 dollars, down by 3.9%; Brent October futures decreased to 106.99 dollars. Heterogeneous MX and naphtha price boost in the market. The market price of Asian Heterogeneous MX accumulatively increased 35 dollars to 1315 dollars FOB Korea, up by 2.73%. The market price of naphtha accumulatively increased 32 dollars to 950 dollars CFR Japan, up by 3.49%.

PX market price soared as the supply is tight. Asian PX price increased 92 dollars/ton to 1630 dollars/ton FOB Korea, increased by 5.98%. European PA price increased 74 dollars/ton to 1604 dollars FOB Rotterdam, up by 4.84%.

In the downstream market, price focus of polyester products was pulled up by the upstream feedstocks. The negotiated price of polyester bottle chips increased 150 Yuan to 12,800 Yuan/ton this week. The practical discussions of semi-dull polyester chips accumulatively increased 200 Yuan to 12,500 Yuan this week. The increasing tendency also sees in PSF prices. Jiangsu-Zhejiang origin 1.4D direct spinning PSF increased 150 Yuan to 13,150 Yuan/ton.

To sum up, PX price surged because of its relocation issues, which gives strong support for PTA cost and led PTA futures break thousand Yuan. With the increase of upstream feedstocks, the downstream polyester products steadily increased too. Moreover, the rigid demand still exists, so the PTA price will keep increasing in a short term.