Background: Venezuela said on Tuesday (December 27) that the country’s crude oil production plans to cut 95,000 barrels per day starting in January 2017 to implement the production reduction agreement reached by oil-producing countries and reduce crude oil production to support crude oil prices.
Venezuela has always been the country within OPEC that actively supports the production reduction agreement, because the country’s economy has been hit hard by low oil prices, and it hopes to push up oil prices through production cuts. Venezuela’s current crude oil production exceeds 2.4 million barrels per day.
Starting from January 1, 2017, the Organization of the Petroleum Exporting Countries and some non-OPEC producing countries will officially start production cuts and implement a production reduction plan of nearly 1.8 million barrels.
New Year’s Day is approaching, and as the implementation of the OPEC crude oil production reduction agreement approaches, the chemical fiber market, which has gradually returned to calm, is in turmoil again. The market generally believes that the Organization of the Petroleum Exporting Countries (OPEC) production reduction plan that took effect in January 2017 will accelerate the progress of rebalancing supply and demand in the global crude oil market. Optimism has supported the recent surge in international oil prices. As of the 28th, the price of light crude oil futures for February 2017 delivery on the New York Mercantile Exchange closed at US$54.06 per barrel; the price of London Brent crude oil futures for February delivery closed at US$56.22 per barrel.
As mentioned in the previous article, this year’s polyester filament market is often unconventional and unusually “lucky”; as long as there is any “turbulence” in the industry, the polyester filament market will stage various turnarounds. Quotes. Whether it is the strong rise in the cost of upstream raw materials, the convening of various chemical fiber industry conferences, or various other news stimulations; these have all become the reasons for polyester and polyester manufacturers to promote bullish prices with various price guarantees. This time, various favorable factors are coming together again. Can the polyester filament market replicate the previous market situation again?
PTA futures spot prices surged
Driven by the stimulus of oil prices and funding, Zhengzhou Commercial Exchange PTA futures have shown a rising pattern in recent days, closing sharply for two consecutive trading days. Among them, the main 1705 contract increased by 1.32% and 2.56% respectively on the 27th and 28th. . Boosted by futures, the PTA spot market has returned to an upward trend in recent days; the quotation in the internal market has risen to about 5250-5300 yuan/ton, and market transaction discussions have risen to around 5150-5210 yuan/ton.
MEG hits new high for the year
As a major product with outstanding performance in polyester raw materials this year, MEG has continued to perform strongly and upward in recent days under the condition of stable fundamentals, and electronic trading has also experienced daily limit rises from time to time. It is reported that around December 16, MEG’s internal quotation set a new high for the year with a price of 7,630 yuan/ton; the price climbed this week, strongly exceeding 7,800 yuan/ton, setting a new high for the year, basically the same as last year’s April and May monthly high levels.
Polyester filament is “rising” again!
Recently, although polyester filament yarn has ended the previous market trend of “one price in the morning! one price in the afternoon”, it has not experienced a “callback” as expected by the market, but has continued to rise steadily. Especially boosted by the cost of upstream raw materials, the polyester filament market has continued to rise at will in the past two days. Mainstream polyester manufacturers have successively raised prices, mainly due to the price increase of some FDY products and POY products.
This time, triggered by the crude oil production reduction agreement, the upstream raw materials PTA and MEG were boosted, which to a certain extent triggered a “thousand-layer wave” in the polyester filament market; coupled with the recent re-convening of the POY Alliance meeting, It is reported that the company is discussing the reduction and shutdown of polyester equipment before and after the Spring Festival.
Under a series of stimulations, the purchasing enthusiasm of downstream weaving manufacturers was once again stimulated, and their purchasing enthusiasm increased significantly. The production and sales of the polyester yarn market quickly recovered. It is easy to see from the chart below that the purchases of mainstream polyester manufacturers have picked up significantly in recent days, with production and sales exceeding 100%. Some of the higher production and sales have even reached 200% and above.
To sum up, the current polyester filament market is like wind and rain! From a fundamental point of view, the rising momentum of polyester raw materials has not diminished, and the mentality of downstream manufacturers is to buy up and not down. Coupled with the low inventory of polyester manufacturers during the year, and the expectation that the equipment will be shut down for maintenance before the Spring Festival, polyester filament is still in a situation where it is easy to rise but difficult to maintain. falling situation.
It is also reported that a fire broke out in a major chemical fiber factory in Zhejiang today. Although the specific situation and losses are still unclear; it cannot be ruled out that the market will take this opportunity to speculate on the polyester filament market.
The above pictures are provided by netizens
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