PX price is weak, the market for September lack of confidence

PXN closed at $283.50 / ton on Aug. 6.  PXN's downward path then began, ending Aug. 31 at $244.9 a ton, down $36.80, or 13.07 percent.The price of naphtha and naphtha shows a shrinking trend, which is related to the bearish situation caused by the epidemic and the delayed impact of the restart of PCS in Singapore due to the fire.

Analysis of the decline of PX and naphtha price difference:

1.Yisheng's 3.6 million tons of equipment continued to be unstable, from the highest 80% load in July to the end of July, all stopped until August 16 to restart a set, August 25, restored to 80% operation.

2.The technical reform of Sanfangxiang was advanced, and the steam could not be supplied due to the maintenance of the power plant. Both sets of PTA were shut down.

Sanfangxiang has a total of two SETS of 1.2 million tons OF PTA units, one of which was upgraded in advance on June 7th, and the other was temporarily shut down on July 30th due to the maintenance of the power plant. Although the current temporarily shut down unit had been in full load operation last weekend, it suffered a great loss during the PX period and reduced PX length to a certain extent.

3. Shengda temporarily reduced load and Zhongtai unexpectedly stopped

The 1 million ton PTA plant of Sichuan Shengda was reduced to 70% operation from July 22 to 28, which reduced PX consumption to a certain extent. Meanwhile, due to steam, the machine will be shut down for 10 days on August 30. But most worth saying, Xinjiang Zhongtai 1.2 million tons of plant on August 6, the unexpected shutdown, resulting in the flow of PX spot sales in East China, PX spot market, play a larger negative impact.

As can be seen from the table, PTA will be under great pressure in the future. Assuming that there is no unplanned overhaul of PTA plant, the supply and demand of PX market will gradually improve from October.

Current trade in October goods, spot slack, seller's market. Last month as weak naphtha, epidemic influence is the most important factor, the short term in September, southeast Asian outbreak to relax, at the same time poet wind affect a certain gas production in the United States, the European arbitrage or reducing naphtha, naphtha and crude oil in September so process cost has increased, this month PXN or will be subject to further squeeze, mainly reflected in the first half.