Weekly Report: PTA (Aug.22- Aug.26)

PTA futures showed weakly declining tendency after its surge last week. PTA futures went down this week. Ended by this Friday, main force contract 1201 closed at 9962 Yuan/ton, slightly slid 48 Yuan/ton, the decreasing rate was 0.48%.

At the spot goods side, the overall prices were high. Ended by Friday, the discussion price in PTA domestic market increased to 10,000 Yuan rose 100 Yuan compared with last Friday. The practical discussions price of Taiwan cargo increased to 1290 dollars rose 20 dollars compared with last Friday; while Korean cargo increased 15-20 dollars to 1270 dollars in the same period.

As global economy keeps weak, the recovery prospect is gloomy, international oil price slumped. In this week, oil price kept adjusting and shaking. Ended by 25^th, October Futures in NYMEX increased 0.14 dollars to 85.30 dollars/bbl at the close; October futures of Brent oil increased 0.47 dollars to 110.62 dollars/bbl.

The market price of Heterogeneous MX and naphtha both boosted this week. Among one week, Heterogeneous MX price accumulatively increased 6 dollars/ton to 1321 dollars/ton FOB Korea; while naphtha price raised 12 dollars to 962 dollars/ton CFR Japan. PX price both increased and decreased this week. Accumulatively speaking, Asian PX price increased 8 dollars to 1638 dollars FOB Korean and European PX price dropped 9 dollars to 1595 dollars FOB Rotterdam.

In the downstream market, due to improved market atmosphere, polyester products price steadily went uptrend. The discussion price of bottle chips increased 100-200 Yuan to 13,000 Yuan/ton among this week; semi-dull polyester chips stayed firmly at 12,500 Yuan/ton; PSF price increased 150 Yuan/ton to 13,300 Yuan.

At present, although PX keeps consolidating and performs unstably, its price is still at a comparatively high level. PX gives strong support for PTA cost by now. However, Ningbo Yisheng Petrochemical is expected to restart at the end of August after its previous damage, which affects the strengthened confidence in PTA market. The operating rate is steady in the downstream market, and the feedstock price is firm. Pushed by purchasing power and increasing cost, the chemical fiber spinning manufactures’ intention of raising prices is strong. Therefore, PTA has increasing space in the afterward market.