Weekly Report: PTA (Feb, 13- Feb, 17)

     This week, PTA market kept dropping resulted from weak demand in downstream market and insufficient textile orders. As for the prices of spot goods, domestic quotations dropped 200 Yuan/ton to 8950 Yuan/ton by Friday, down 2.19%. The discussions of Taiwan cargo decreased 30 dollars/ton to 1180 dollars/ton till Friday, down 2.49%. In the futures market, contract 1205 closed at 8914 Yuan/ton this Friday and the decreasing rate was 2.52%.

    In upstream market, the oil prices increased greatly due to the worry about the supply break of Iran oil and the inspiration of relief plans for Greek debt. Ended by this Thursday, the futures price of March contract increased to 102.31 dollars/bbl in New York, up 3.69%. Brent April futures increased to 120.11 dollars/bbl. However, PX market showed extraordinary different trends. This week, Asian PX price decreased 20 dollars accumulatively to 1601 dollars and European PX price decreased 21 dollars to 1524 dollars.

    In downstream market, although the operating rates slightly increased among the textile factories, the activity of them was still down as the orders were insufficient and the inventories were still at high levels. As for the polyester yarn, the market stayed mild and was lack of trades. Judged from the polyester bottle chips, the leading discussions in East China decreased 200 Yuan to 11700 Yuan/ton.

    At present, PTA market did not rely on the cost support of upstream feedstocks any longer. Instead, the downstream demand appeared to have much influences upon the PTA market. However, the market is still weak as the orders in the downstream market are still inadequate. Many traders are selling cheap goods by now in order to cut the stocks.