According to the Commodity Market Analysis System of the Business Society, the domestic PTA market has slightly rebounded this week (October 23-27), with an average market price of 5875 yuan/ton in East China as of October 27, an increase of 0.42% compared to the beginning of the week.

In terms of PTA supply, the industry’s operating rate is 78%. The Zhuhai Ineos 1 # 110000 ton PTA plant was overhauled in mid October until the end of November, with a load of 80-90% for the 2 # 125000 ton PTA plant. In addition, Hengli’s 2.2 million ton PTA plant has been delayed in restarting and contract goods have been reduced. Next week, Yisheng Ningbo’s 2.2 million ton and Yadong Petrochemical’s 700000 ton PTA units are scheduled for maintenance in early November. There are currently no plans to restart new PTA devices, and the supply of PTA goods has decreased.

Recently, crude oil prices have fluctuated repeatedly due to the conflict between Palestine and Israel, as well as expectations of weak demand. On October 26th, the settlement price of the main contract for WTI crude oil futures in the United States was at $83.21 per barrel, while the settlement price of the main contract for Brent crude oil futures was at 87.05 yuan per barrel. Overall cost support has weakened.

The polyester load remains at a high level of nearly 90%, relatively strong. As the end of October approaches, terminals are gradually weakening, and the “Double Eleven” and Christmas promotion effects are limited, resulting in insufficient motivation to undertake new orders. At present, most weaving manufacturers have increased inventory pressure, coupled with weak new orders. The enthusiasm for replenishing raw materials has decreased, only maintaining just in demand and consuming more inventory of raw materials. This has caused a certain drag on the polyester market, and the prices of various polyester products have shown a slight weakening.

Business analysts believe that the recent reduction of contract goods by mainstream PTA suppliers has boosted the market and temporarily eased the supply-demand contradiction. However, due to weakened cost support and insufficient terminal demand, there is still downside risk in PTA prices.