Price Trend
According to the price monitoring of SunSirs, the domestic PTA market fell sharply on March 10. The average market price in East China was 6,054 RMB/ton, down 7.64% from the previous trading day and up 36.15% year-on-year. The main PTA contract fell by the limit, and the main futures 2205 closed at 6,024, a decrease of 7.01%.
Analysis review
The geopolitical risks in Europe temporarily eased, crude oil fell sharply, and the support for PTA costs declined. The processing fee was historically low, and the maintenance of the PTA factory increased. The downstream polyester started high but the demand was not strong, and the inventory was backlogged. The quotations of mainstream polyester factories in Jiangsu and Zhejiang ere flat, and the terminal textile market had a strong wait-and-see mood, and purchases were mainly cautious.
Market outlook
SunSirs’analysts believe that PTA was affected by equipment maintenance, and there was no significant increase in the supply side. The downstream polyester was under the pressure of high inventory and low profit, and it might be expected to reduce production. The current cost factor continues to dominate the PTA market. With the decline of crude oil, it is expected that the price of the PTA market will fluctuate and adjust to be weak.
