Slump of PTA Lead Polyester Rise Difficult to Continue

    Firstly, in terms of the cost, the cost support of polyester industry chain was still strong. Last Friday, the PX price increased 52 dollar to 1,445 dollar FOB Korea in Asia. Supported by the cost, PTA spot market was stable temporarily and PTA quotation in domestic market was 7,700 Yuan/ton; the quotation of Taiwan cargo was 1,020-1,025 dollar/Ton and Korea goods was 1,005-1,010 dollar/Ton. The firm upstream feedstock market trend supported polyester market to some degree.

    As we know, at present, the financial attribute of polyester feedstock market was more and more obvious, which occupied the leading role of polyester market. Recently, the Europe debt crisis emerged again and bad factors of external environment increased, international crude oil price bore pressure obviously, the crude oil futures price dropped again, the oil price of NYMEX dropped 1.22 dollar to 91.44 dollar/barrel on July 20.

    In terms of the demand condition of polyester market, because the terminal demand was not improved obviously, the purchasing in the market was mainly based on rigid demand. The centralized purchasing was partly because “buy in hike not in dip” mentality. So if there is no good news to support, it is estimated that the rise of polyester market price will not be continued.