Weekly Report: PTA (Nov.21- Nov.25)

PTA futures slightly increased at the beginning of this week while dropped dramatically on Wednesday due to the bad macro environment and decreased oil prices. Ended by this Friday, Contract 1205 of PTA futures closed at 7844 Yuan/ton, which lost 136Yuan/ton compared with the close price on Monday in ZCE (Zhengzhou Commodity Exchange).

Ended by this Friday, the practical discussions of PTA spot goods are around 8150 Yuan/ton in domestic market, which increased 100 Yuan/ton compared with the price last Friday. The price tendency in overseas market is similar with it in domestic market.

The overall crude oil futures market was mainly downtrend this week. Wednesday, the futures price decreased to 96.17 dollars; made a new low in two weeks and started rebounding again. The petrochemical products’ prices showed downtrend this week. Naphtha price decreased 26 dollars to 868 dollars on market. PX price decreased 10 dollars to 1378 dollars/ton in Asia.

The whole polyester industrial chain stayed underproduction. The operating rate of the looms in downstream market decreased from 72% to 55%. The prices are also weak and the overall operating rate of the entire industry decreased to 86.5%. Judge from the prices, PSF price slid to 10700 Yuan/ton. The polyester yarn price also stayed at a modest state. Although direct spinning mills in Shengze slightly decreased the yarn prices, the overall price tendency was stable.

Outlook: European debt crisis will keep affecting the global financial market in a long run and obstruct the global economy from recovery. The macro environment is still pessimistic. Most manufacturers are experiencing losses as the decrement of PTA price was too great. Although the introduction of underproduction and price-protection policy stabilized the market and increased the confidence of the insiders, the supportive effect from feedstocks PX is still weak as the market is also lack of demand. Therefore, PTA market will stay in adjustment in the future.