According to the Commodity Market Analysis System of Business Society, the domestic PTA market showed a slight recovery this week (August 7-11), with the average market price in East China as of August 11 at 5914 yuan/ton, an increase of 1.09% compared to the beginning of the week.

Under low processing costs, the recent unexpected maintenance of PTA devices has increased, resulting in reduced supply. As of August 11th, the industry’s operating rate is around 76%.

Crude oil fluctuates significantly, and concerns about supply tightening have driven oil prices to a nearly nine month high, supporting PTA costs. As of August 10th, the settlement price of the main contract for WTI crude oil futures in the United States was $82.82 per barrel, while the settlement price of the main contract for Brent crude oil futures was $86.40 per barrel.

Downstream polyester production is still at a relatively high level within the year, maintaining around 90%, with a primary demand for PTA. The atmosphere in the terminal textile market has slightly warmed up, and some textile and clothing factories have high expectations for future raw material prices. They have gradually started the inquiry and sampling mode, and most weaving factories have a strong load. Currently, the weaving start-up rate in the Jiangsu and Zhejiang regions is over 60%.

Analysts from Business Society believe that in the short term, cost support still exists, polyester has a low inventory and stable load. The current fundamental performance is still acceptable, and PTA prices will continue to strengthen. But in the future, the restart of PX and PTA devices will increase, leading to an increase in supply. The performance of stacked terminal orders is average, and the weaving process is generally stocked up until September. The willingness to replenish inventory at high prices is insufficient, and the expectation of polyester production, sales, and inventory turning weak has formed a certain drag on the PTA market, and the price rebound is limited.