Weak Demand, PX Profits Plunge During The Week

This week, PX cost side rose larger, demand side support was not strong, PX prices rose little during the week, and profits fell sharply.

Cost side: international oil prices showed a sharp decline in the first week, followed by a trend of bottoming up. Overseas demand for the disease was suppressed, supply became increasingly oversupply, and surplus storage capacity was insufficient. WTI futures were selling wildly, and for the first time in history, they fell to a negative value. Oil production on Wednesday was expected to cut production and geopolitical effects, and oil prices lasted for two days. The price of naphtha and naphtha increased, while the PX and naphtha spreads fell to $237.25 / ton on Thursday, down 35.67 US dollars / ton compared with last week. In terms of operating rate, the current PX operating rate is 91.9%, with little change during the week.

Demand side, the current PTA operating rate adjusted to 91.01%. 20-23 days in April, Yisheng Ningbo 2 million tons PTA installation was short and short. Tianjin Petrochemical 340 thousand ton PTA plant was shut down in April 17th, and there is no definite restart time. Polyester week started at 84.97%, production and sales decreased, weekly inventory increased, while weaving began to continue to reduce the ring, polyester demand is still deviation, weekly PTA daily storage is still near 10 thousand tons.

Price: as of April 23rd, PX closed at 469.5 US dollars / ton CFR China, the weekly ring ratio rose 0.28 percentage points, 40.72 percentage points lower than before the holiday. Domestic prices, Sinopec PX4 monthly settlement price of 3820 yuan / ton (cash 3800 yuan / ton), compared with March down 940 yuan / ton.

On the market outlook, in the absence of major positive events, next week, the cost side oil prices will continue to downside risks, cost support is not strong, it is expected that next week, PX prices will be weak and volatile.

region	2020/1/23	2020/4/16	2020/4/23	Cycle ratio	Preganglionic
FOB The Republic of Korea	Seven hundred and seventy-four	Four hundred and fifty point one seven	Four hundred and fifty-one point five	0.30%	-41.67%
CFR China	Seven hundred and ninety-two	Four hundred and sixty-eight point one seven	Four hundred and sixty-nine point five	0.28%	-40.72%

Source: lung Chung