Weekly Report: PTA (Sept.26-Sept.30)

 PTA futures continues to decrease this week. Although it rebounded on Friday, the overall tendency is still downward. Ended by this Friday, main force contract 1201 in ZCE closed at 8780 Yuan; which decreased 464 Yuan dramatically, down 5.02%.

 

In the spot market, influenced by the macro environment, capitals and bad demand in the downstream market, PTA market greatly decreased. In the domestic market, the negotiated price slumped 800 Yuan to 9350 Yuan/ton by now, down 7.88%. The market price of Taiwan cargo decreased to 1190 dollars; lost 120 dollars compared with last Friday, down 9.16%. 

 

European debt crisis gave great pressure to the market. Dragged by the pessimistic U.S. economic data, storage of crude oil and product oil increased, which led a lot of traders undersold the futures in the futures market. This week, crude oil futures dropped over 80 dollars on Monday. Ended by this Thursday, crude oil delivered by November in New York closed at 82.14 dollars; increased by 1.63 dollars compared with last Friday. 

 

In the downstream market, the polyester products price followed the declining tendency, and the decreasing rate was around 400-500 Yuan.

The market price of polyester bottle chips decreased to 12700 Yuan accumulatively this week, while semi-dull polyester chips decreased fewer than 12400 Yuan. The polyester filament yarn is known dropping this week due to the slumped PTA futures.

 

To sum up, although non-interest factors from the macro-side is dominating the market right now, the second worldwide economic recession may overspread, and the low demand in the downstream market may drag the PTA down; PX price is still at a high level at present and gives strong support for PTA. The PTA capacities are sufficient, but the maintenance afterwards may decrease the load and release the over-supply situation.