In June, which was originally the off-season, there are signs of recovery. Has the market reached an inflection point?
In U.S. trading on Wednesday, WTI crude oil once stood at $74 per barrel, continuing to reach a new high since October 2018.
Affected by this, polyester chain varieties have obviously received support from the cost end, and the superimposed polyester end has maintained a high start-up. Yesterday Polyester chain product futures collectively rose, with EG leading a rise of 3.61%, PTA rising 2.81%, closing at the highest level since the rebound in November last year, and staple fiber closing up 2%.
In fact, the performance of PTA before the Dragon Boat Festival was relatively lukewarm. The market is mainly worried about the demand for polyester, because there will be relatively more maintenance in mid-May, and there will be more maintenance in the future. It is the off-season for terminal textiles. However, recently, the polyester industry’s price-for-volume promotion policy has led to companies destocking warehouses one after another. With the recovery of overseas demand, orders have appeared sporadically in autumn and winter, making the demand for PTA and ethylene glycol expected to be acceptable.
However, the 3.3 million-ton unit of Yisheng New Materials restarted test runs last week and will produce products in the near future. The new supply may break the current situation of PTA destocking, tight supply in some production areas, and substantial cancellation of warehouse receipts, which will be negative for PTA prices. Overall, there was no obvious good news on the supply and demand side of PTA during the week, and the price increase was mainly due to the increase in crude oil prices and the impact of funding.
Previously, the trend of EG was mainly affected by poor supply and demand expectations. In the future, with the addition of new domestic production capacity, domestic output will increase significantly. As the load of overseas devices gradually increases, import volume will also increase. . However, expectations for increased supply in the ethylene glycol market have been fully met. Driven by the surge in international crude oil, ethylene glycol regained important support levels, with spot prices in East China reaching 4,830 yuan/ton yesterday. In addition, there is a need to cover short positions as delivery near the end of the month supports EG’s rebound.
With the consumption of terminal supply during the Dragon Boat Festival holiday and the most important cost assistance, the short fiber market’s worries have eased slightly. At the same time, the processing fee of polyester staple fiber itself is low, and the market price of polyester staple fiber is gradually rising due to rising costs; the rigid demand support in the post-holiday market and the promotional measures of some factories under their own inventory pressure have driven buyers in all aspects to replenish goods. , therefore, factory production and sales have increased this week, but due to the off-season market, actual orders are average, and overall buyers are mostly buying at low prices, with weak enthusiasm to pursue high prices. </p
