PTA futures opened for the sixth consecutive year after the holiday, and the market price continued to rise and hit new heights. The market performance of PTA, which has always been calm, at the beginning of the new year is indeed impressive. The price of PTA continues to rise, which makes the chemical fiber manufacturers in the downstream say “the cost is too high, there is no money to make, it will not work unless it goes up”! Less than half a month after the market opened, the price of polyester filament increased by 200-400 yuan/ton. , ushering in a strong “good start”.
However, after several days of rapid progress, PTA’s style changed drastically on the 15th, and futures prices plummeted. As of the close of trading on the 15th, the price of the PTA futures 1705 contract fell sharply to 5,708 yuan/ton, down 158 points or 2.69% from the previous trading day, the largest decline in recent days. PTA futures suffered a sharp drop after consecutive gains, dampening downstream enthusiasm for chasing gains.
As a chemical fiber product, the post-holiday market for ethylene glycol is not as optimistic as expected, and the price of ethylene glycol has been falling continuously in the past two days. On February 14, the ethylene glycol 1704 contract on the Huaxi Village Commodity Exchange closed weakly and fell. The main 1704 closed at 7,700 yuan/ton, down 230 yuan/ton from the previous trading day.
On February 15, the ethylene glycol 1704 contract of the Huaxi Village Commodity Exchange fell sharply. The main 1704 closed at 7528 yuan/ton, which was 172 yuan/ton lower than the closing price of the previous trading day.
Although the downstream polyester factories are currently recovering well, the raw material stocks of polyester manufacturers before the holiday have not been fully digested. The replenishment efforts of polyester manufacturers are limited and the demand has not been fully released, causing ethylene glycol stocks to continue to accumulate after the holiday. As of the week of February 11, the total inventory of MEG in the main port of East China was approximately 594,000 tons, an increase of 107,000 tons compared with the inventory of 487,000 tons before the Spring Festival. Although the overall ethylene glycol port area is still at a low level, compared with before the holiday, the current port inventory level is difficult to boost the ethylene glycol market.
The raw material market performed poorly, and polyester filament prices were mostly stable. Although polyester prices were relatively strong, downstream stocking sentiment was greatly affected. According to data monitored by China Silk City Network, the production and sales of polyester manufacturers in Jiangsu and Zhejiang areas were only around 50-60% on the 15th. However, under the continuous rise in PTA prices in the past few days, production and sales surged to 100%. At present, the weaving market has not yet recovered. In this special stage, it can be said that the rise and fall of raw material prices have a great impact on downstream purchasing sentiment.
For chemical fiber manufacturers, after a period of accumulated inventory during the Spring Festival, the inventory of polyester manufacturers has increased significantly. Inventory is no longer the best sign for price increases for chemical fiber manufacturers. But on the other hand, although the inventory is higher than before the Spring Festival, the current inventory is still within the tolerance of manufacturers. Polyester manufacturers still have the right to speak in the market. Nowadays, there is a correction in raw materials, which makes the polyester filament market that was originally in a gliding test flight suddenly unable to fly again.
However, the market is currently in the post-holiday recovery period, the spring and summer peak seasons have not yet arrived, and the weaving market demand has not been fully released. Therefore, for polyester filament, the current short-term cultivation is for a better upward climb.
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