Weakening Cost Support, PTA Prices Fell More than 7% this Week

According to the price monitoring, the domestic PTA market fell significantly. As of June 24, the domestic market was at 6,634 CNY/ton, down 7.86% from the beginning of the week and up 33.88% year-on-year.

International oil prices plummeted, and the market was worried that the Federal Reserve would raise interest rates sharply, which may plunge the US economy into recession and suppress fuel demand. International crude oil futures prices continued to fall. As of June 23, the settlement price of the main U.S. WTI crude oil futures contract was reported at $104.27 per barrel, and the settlement price of the main Brent crude oil futures contract was reported at $110.05 per barrel.

On the supply side, the load of the equipment has been gradually increased, and the supply has gradually increased. Yadong Petrochemical started to stop the 700,000 tons on June 18 and restarted on June 24. Yisheng Ningbo's 2.2 million tons was overhauled around June 12, and it is planned to restart in early July, and the industry operating rate is around 77%.

In terms of demand, the company's new orders are not good, the procurement of raw materials is mainly based on rigid demand, and the production and sales of polyester are not prosperous. The terminal orders are general, and the polyester link accumulates a high inventory of finished products, which limits the room for improvement in the polyester operating rate. The operating rate of terminal looms dropped slightly to below 57%.

Analysts believe that the current cost support is weakened, the supply of PTA exceeds the demand, and the short-term PTA price will continue to fluctuate and be weak.