Good Fundamentals, Polyester Staple Prices Slightly Higher

According to the price data of business associations, the average price of 1.4D*38mm polyester staple domestic market was 7152 yuan / ton as of December 31st, rising 4.32%, or 296 yuan / ton, down 21.43%, or 1951 yuan / ton. Dachang generally quoted price between 7000-7300 yuan / ton, and the quotation is stable at the end of the year.

The fundamentals of crude oil were optimistic. Oil prices rose and fell on Monday. In fact, the oil futures in Europe and the United States rose by more than 10% in December. The first is that Sino US trade has reached an agreement, which has succeeded in encouraging the market; second OPEC has decided to deepen the production reduction agreement; third, the US crude oil inventory dropped strongly supporting oil prices; fourth the United States took action against Iraq and Syria, and the tension in the Middle East also caused oil prices to rise to a certain extent.

30, PTA affected by raw materials, strong shocks, the main contract TA005 closed up 44 yuan higher than the closing price of the previous trading day. On the spot, the trading atmosphere is light, and many sets of devices are being overhauled. Ningbo Yisheng 2 million 200 thousand tons plant is scheduled to be overhauled at the end of -2 in the middle of January. Helen Petrochemical's 1 million 200 thousand ton plant went into maintenance in December 20th. Yisheng Dalian 2 million 250 thousand ton plant has been overhauled at present. It is planned to restart in mid January. At present, the PTA's industry start-up rate has dropped to 87.19%, which has made PTA's storehouse pressure eased. Jiangsu and Zhejiang polyester production and marketing is also weak, only 46%, generally traded.

The downstream 32S polyester yarn was closed to 31 days, and the average factory price in Shandong area was 14420 yuan / ton, down 0.14%, or 20 yuan / ton. Compared with the same period, it fell 12.39%, or 2040 yuan / ton. The price of the middle end factory is concentrated at 13900-14200 yuan / ton, and the price of the high-end factory is 15000-15300 yuan / ton. Because of the earlier this year, most domestic manufacturers have been on holiday, but the yarn is showing a slight upward trend in recent years, which is doubtful whether the manufacturers are willing to raise prices. First, the rise of the downstream fabric is only temporary, and most of them are based on stock elimination. Secondly, the rise of yarn is only due to the upstream raw materials. If the terminal demand can not keep up, the price will drop later.

To sum up, business analysts believe that the fundamentals of the crude oil are good, many are cutting production, PTA supply and demand margins are weakening, polyester production and marketing are low, terminal demand is turning into low season, and PTA's fundamentals are weak. Downstream yarn has risen unusually, although demand has not improved significantly. The price of PTA is expected to increase slightly in January.