According to the price monitoring of SunSirs, the domestic PTA market has maintained a strong rise and is at a 3-year high. As of June 8, the average market price was 7,726 RMB/ton, up 6.81% from the previous day and up 65.20% year-on-year.
Analysis review
The OPEC production increase plan did not effectively improve market expectations, and crude oil prices continued to run high, with Brent crude prices rising to a high of $120. The supply side of PX has decreased, concerns have increased, and PTA cost support has been strengthened.
In addition, low processing fees have forced the increase in maintenance of PTA factories. Although some devices have been restarted recently, they are still relatively low compared to the same period last year. The current industry operating rate remains around 73%. With the accelerated resumption of work and production, the start-up of downstream polyester factories has increased slightly, and the terminal demand has improved. Therefore, there are signs of phased marginal improvement in the supply and demand of PTA.
Market outlook
SunSirs’analysts believe that under the logic of rising costs and month-on-month improvement in demand, PTA prices will continue to strengthen in the short term.
