Weekly Report: PTA/ PET (Oct.15th- Oct.19th)

Product Variety	Monday	Tuesday	Wednesday	Thursday	Friday
PX（FOB Korea）	1567	1559	1559	1556	-
PTA（Overseas Market）	1110	1110	1115	1115	1110
PTA（Domestic Market）	8400	8400	8400	8400	8300
MEG（Overseas Market）	1110	1112	1115	1115	1118
MEG（Domestic Market）	8320	8282	8300	8300	8270
semi-bright PET chips	10400	10350	10350	10300	10300
PET bottles（FOB China’s main port）	1380	1380	1380	1380	1380
PET bottles（Domestic Market）	10500	10500	10450	10450	10450

The price of international crude oil had a narrow range of shock, and the New York crude oil futures in Nov. reduced slightly 0.24 dollars closed by Thursday of this week. At present, the peripheral market performance is very sensitive and the market outlook trends are not very clear. Due to the ongoing weakness of the terminal textile market, the raw material price of PET products is weak while maintaining the stability. The international PX price was about 1,558 dollars this week and the change of price limit was less than 10 dollars. PTA price was around 8,350-8,400 Yuan/ton and the transaction was given priority to stabilize in the market. MEG price was similar to PTA price, the trends showed the small fluctuations and the mainstream negotiating price stayed at 8,300 Yuan/ton. Influenced by the sluggish future market and the low demand in the downstream market, the PET chip price went weak while maintaining the stability. The price of semi-bright PET chips declined 100 Yuan to 10,300 Yuan/ton ended on last Friday. Similarly, the price of PET bottles also tended to be weak while maintaining the stability and the major negotiating price cut 50 Yuan/ton to 10,450 Yuan/ton or below. In addition, the polyester yarn price had cut down and the quotation of several polyester yarn reduced 100-200 Yuan/ton.

See from the production and marketing situation of PET raw material in Shengze Town, China, the PET chips was relatively stable this week. The production and marketing of the leading manufacturers was in 60-100% and the preferable manufacturers could be reached about 160%. In the aspects of polyester yarn, the production and sales of this week was relatively low, the major enterprise was around 50% and the preferable could achieve 80%. In the aspects of stocks, the inventory of PET chips stayed around 22 days, which increases slightly one or two days, the stocks of FDY and POY were about 18 days and DTY was close to a month. At present, the stocks had been improved than before. Along with the imminent passing of the textile traditional peak season, it was expected that the manufacturers would be controlled the installed load in order to maintain the inventories.

To sum up, the peripheral market had no any good expectations, while the market was lack of confidence following the end of the traditional textile peak season. Purified terephthalic acid (PTA), one of the most important materials of polyester, which the expansion of production capacity would be a huge shock to markets. Although the production and marketing of PET chips was good and the inventory remained stable, the chip price followed the price trends of upstream raw material. Recently, the raw material of chip price was weak owing to the sensitive international situation and uncertain factors of the international crude oil futures. The losses of PET bottles lasted a long time, the bottles were in the doldrums and the suppliers offered more preferential than usual. Due to the higher stocks after the National Day and Mid-autumn Day, the strength of limiting the production in the manufacturers had yet to be upgraded. Under the pressures of high cost, low demand and high inventory, the PET bottle price was difficult to be boosted in a short term.