Weekly Report: PTA (Feb, 6- Feb, 10)

This week, PTA market was in adjustment and did not perform well. As for the prices, the discussions were around 9,100 Yuan/ton in the domestic market. The market prices slightly increased in overseas market. Among the prices, Taiwan goods increased 5 dollars to 1,205 dollars/ton and Korean goods increased 10 dollars to 1,195 dollars/ton.

In the futures market, PTA futures is mainly dropping and consolidating. Ended by this Friday, contract 1205 of PTA futures closed at 9,172 Yuan/ton in Zhengzhou Commodity of Exchange. This price decreased 20 Yuan/ton compared with the close price on Monday, down 0.22%.

Affected by the optimistic attitude upon the crude oil demand this week and supported by the beneficial factors including the decreased of USD exchange rate, the crude oil prices kept increasing for three days within the trading days. New York crude oil, March futures accumulatively increased 2 dollars to 99.84 dollars/bbl this week, up 2.04%. Brent March futures grew 4.01 dollars to 118.59 dollars/bbl this week. The firm performance of crude oil prices also gave strong support for PX prices. Asian PX price increased to 1621 dollars/ton FOB Korea in one week. European PX price stayed at 1545 dollars/ton FOB Rotterdam.

Although the operating rate slightly increased in the downstream polyester factories, the sales of polyester yarns were still weak due to lacking demand in the downstream market. The discussions of polyester bottle chips stayed around 11,900 Yuan/ton and the leading quotations of semi-dull polyester chips were around 11,300 Yuan/ton.

At present, the marketers are still worried about the after the macro economy and the prices of products fell generally, but the PTA price may keep steady under the strong support of PX prices.