Crude Oil, Chemical and Fiber Market Week 18

Please check the updated market trend of Week 18:

Data this week – W18

#WTIPTAMEGPET SDBOTTLEPSF1.4DVSF1.2D
2020/4/3015.063165.003415.000.590.710.721.20
2020/4/2316.503125.003290.000.580.700.751.27
Change-1.4440.00125.000.010.01-0.03-0.08
Ratio-8.73%1.28%3.80%2.18%1.36%-3.70%-5.96%
 POY150DFDY68DDTY150DP30RINGV30RINGV30OEV30MVS
2020/4/300.670.830.871.241.681.551.59
2020/4/230.640.760.851.271.701.571.61
Change0.030.070.02-0.03-0.02-0.02-0.02
Ratio5.33%8.56%2.46%-2.48%-1.11%-1.21%-1.18%

Market this week – W18

Summary: Oil fluctuated and fell, PTA rose, MEG upward, Polyester chip fluctuated, Polyester filament yarn rebounded, PSF fell firstly and stable, VSF dropped sharply and stable.

1,The oil price fluctuated and fell this week. Oil prices fell sharply on Monday, as the market worried that crude oil production in the United States and other regions would not be reduced enough to offset the sharp drop in demand caused by the COVID-19. Investors tried to balance the optimism of the reopening of US companies with the continuing threat of the COVID-19 to American health and the economy, and the fear that there was no place to store oil, resulting in large fluctuations in oil prices recently. On Wednesday, Gilead Technology announced that its research and development of Remdesivir has obtained positive data in clinical trials for the treatment of COVID-19, which has boosted the market and the oil price closed higher immediately.

2,PTA futures went down firstly and then rose, the spot prices followed to increased. On Monday, crude oil continued to fall, and PTA futures fell with weak demand. Although polyester production and sales were rebounded, the buying was weak under the bearish sentiment. In the middle of the week, the increase in PTA futures expanded and polyester factories buying increased . Some large orders were transacted, and the main orders were far-month futures. The transaction was average this week. It is expected that PTA is going to continue shocks consolidation.

3,MEG shocked and upward this week. On Sunday, the MEG price fluctuated slightly, and the market transaction was average. Starting from Monday, MEG prices fluctuated higher due to improved downstream polyester production and sales. The transaction is acceptable. From April to May, MEG supply and demand is expected to slowly change from the previous accumulation to loose balance, and the short-term MEG range is expected to fluctuate.

4,The polyester chip fluctuated at a low level, crude oil rebounded after a sharp drop, and the polyester cost side gradually stabilized. The transaction atmosphere of the polyester chip rebounded moderately. Prices rose slightly in the second half of the week. Buying at low price level increased during the week, but the willingness to chase higher was limited, weekly transactions are generally, mainly replenished as orders.

5,The price of polyester filament yarn in Jiangsu and Zhejiang has been driven up by many factors. At the beginning of the week, the transaction volume of water-jet epidemic protect fabrics increased rapidly, driving the sales of FDY fine denier yarn, and the yarn price increased; In mid-week, as the loss expanded, the POY mainstream factories took the lead to increase. In the atmosphere of rising raw materials and the expectation of economic recovery in Europe and the United States, the polyester factory took the initiative to increase again. The price in South China is generally stable, and transactions have increased. In the export market, some overseas bargain-hunting orders have also been issued recently, and the overall market is still light.

6,At the beginning of the week, the price of Polyester staple fiber was lowered. In the middle of the week, due to the strong trend of raw materials, the decline of PSF slowed down. The sales of spunlace staple fiber remained light; the coarse denier fiber was no longer in demand, and the price of low-melting staple fiber continued to decline. However, due to the strong rising support of polyester raw materials in the second half of the week, the PSF decline slowed down, and the downstream made up positions before the holiday, and the transaction moderately improved. At present, the staple fiber factory is running at full capacity. Due to the shortage of goods in the early stage, the inventory pressure of the staple fiber factory is not large.

7,As the new lower price of viscose staple fiber was applied, concentrated purchases were made by downstream. On Monday, high-end large-scale factories took the lead in lowering prices and implemented tiered sales policy based on purchase volume. Subsequently, other high-end factories followed the price reduction, and mid-range factories implemented listed sales policy. After a sharp drop in prices, the short-term production and sales surged and then price turned to be stable.

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