Weekly Report: PTA (Feb, 20- Feb, 24)

Although the cost of PTA kept increasing recently, the production-marketing was still as usual in the downstream market and the PTA market was still in consolidation. Judged from the spot prices, the market price of PTA stably increased. The domestic quotations were around 8950 Yuan/ton this week. The trading atmosphere was still dull. PTA price slightly increased in overseas market. Quotations of Taiwan cargo slightly increased 5 dollars to 1185 dollars/ton on Friday. Discussions of Korean goods increased 10 dollars to 1175 dollars/ton on Friday.

In the futures market, PTA mainly showed downward tendency this week. Ended by Friday, contract 1205 in Zhengzhou Commodity of Exchange closed at 8946 Yuan/ton, which dropped 62 Yuan/ton compared with the close price on Monday, down 0.69%.

Improved economic data in USA and Germany is going to increase the demand for oil. As the situation got more severe in Iran, the oil prices followed the increasing tendency which had already reached a new high in 9 months. Ended by this Thursday, April futures of New York oil increased to 107.83 dollars/bbl and April futures of Brent oil increased to 123.62 dollars/bbl. The market price of PX also kept increasing under tight supply. Ended by this Thursday, Asian PX price increased to 1627 dollars/ton and European PX price accumulatively increased 24 dollars to 1546 dollars/ton.

The marketers were still wait-and-see and the prices showed weakness in polyester market. The weaving factories mainly used inventories during the production and their attitude was cautious while buying raw materials. As the whole market appeared to be mild and the insiders looked lowly upon the aftermarket, the polyester manufacturer might choose to cut the prices as promotions. In specific, the discussions of polyester bottle chips were mainly around 11700 Yuan/ton. The prices of semi-dull polyester chips decreased 150 Yuan/ton to 11000 Yuan/ton on Friday.

To sum up, the oil price may keep increasing in recent times and PX market will keep firm, but their supportive power for PTA market is weak. The rising tendency of PTA is still hindered by the weak demand in the downstream market and PTA may keep stable in a shot time.