Weekly Report: PTA (Oct.24- Oct.28)

Driven by the crude oil and stock market, PTA futures boosted this week. Ended by this Friday, main force contract 1201 of PTA Futures in ZCE (Zhengzhou Commodity Exchange) closed at 8762 Yuan/ton; greatly increased 716 Yuan compared with last Friday, up 7.77%.

Ended by October 28, the discussions of market price increased 200 Yuan/ton to 8950 Yuan/ton in domestic market. The overseas market also saw strongly increase. Taiwan cargo accumulatively increased 35 dollars to 1155 dollars, up 3.13%. Korean goods increased 25 dollars to 1135 dollars within one week, up 2.25%.

The overall crude oil futures market went up greatly this week. Supported by the optimistic sentiment brought by the deal to tackle the eurozone debt crisis and the favorable economic data of USA, crude oil prices went strong. Ended by this Thursday, New York December futures closed at 93.96 dollars, up 3.76 dollars compared with the price last Friday. This week’s crude oil futures will increase 7% hopefully, then it will make the New York crude oil futures have biggest weekly increasing rate since this Tuesday.

 Increment of the crude oil price supported the cost of petrochemical as well as the prices. Heterogeneous MX increased 36 dollars/ton to 1281 dollars/ton FOB Korea in Asia, up 2.89%. However, the naphtha price decreased on the contrary and showed falling tendency. The market price accumulatively decreased 14 dollars to 869 dollars/ton.

PX price surged this week. Asian PX price grew 59 dollars/ton to 1523 dollars this week and the increasing rate reached 4.04%. European PX price increased 50 dollars to 1455 dollars/ton FOB Rotterdam, the increasing rate was 3.56%.

For the downstream market, polyester products went up and down. Polyester chips price basically stayed at 12000 Yuan/ton. The polyester semi-dull chips price was mainly increasing this week.

To sum up, although stock market boosted in Europe and America, the crude oil price increased dramatically and the PTA market is profitable, PTA market didn’t show strongly rebounding trend due to the inventories of downstream manufacturers, lack of orders and decrease in operating rates. Therefore, PTA will mainly be shaking and adjusting in a short term.