According to the business community monitor, since December, affected by the weakening of cost and weak demand, the PTA price has fallen further. By December 7th, the average price in the domestic East China market was 5115 yuan/ton, down 7.88% compared with the beginning of the month. November 8 appeared to stop the decline, a day up 0.16%.
In terms of PTA supply, the new production capacity was put into production later than the market expected, and two sets of new devices have not been put into production substantively. However, some units were restarted, among which the 350,000 ton unit of Yizheng Chemical Fiber was repaired on November 4 and restarted on December 7. The 700,000-ton unit of Yadong Petrochemical was overhauled on November 27 and is scheduled to restart on December 12. The current industrial operation rate is around 66%.
International crude oil prices fell to their lowest level this year, with the main contract for WTI futures settling at $72.01 per barrel and the main contract for Brent at $77.17 per barrel as of Dec. 7. In November, crude oil supply is expected to rebound, and domestic and foreign demand for refined oil products is low, the center of gravity of oil prices continues to move down. Cost support becomes weaker drag PTA downward.
In terms of demand, the downstream polyester industry has high inventory and passive negative increase under the pressure of cash flow recovery. Textile terminal market, under the background of off-season, demand continues to be weak, new terminal orders continue to decline. With the end of November since the beginning of Jiangsu and Zhejiang ammunition, weaving manufacturers have been on holiday, the comprehensive opening rate of Jiangsu and Zhejiang loom has been reduced to less than 50%.
Business analysts said the outlook for energy demand remains gloomy, with economic weakness weighing on oil prices. Superposition the downstream demand is expected to decline, PTA supply strong demand weak contradiction prominent, although PTA has a temporary rebound trend, but it is not sustainable, the future market will still be mainly down.