Crude Oil, Chemical and Fiber Market Week 20

Data this week – W20

#WTIPTAMEGPET SDBOTTLEPSF1.4DVSF1.2D
2020-5-1427.563295.003468.000.600.720.751.27
2020-5-824.743345.003505.000.620.720.761.20
Change2.82-50.00-37.00-0.02-0.00-0.010.06
Ratio11.40%-1.49%-1.06%-3.56%-0.35%-1.50%5.25%
 POY150DFDY68DDTY150DP30RINGV30RINGV30OEV30MVS
2020-5-140.690.850.891.261.671.511.57
2020-5-80.720.870.911.251.671.541.58
Change-0.03-0.02-0.020.010.00-0.03-0.01
Ratio-4.73%-2.75%-1.67%0.50%0.00%-1.64%-0.80%

Market this week – W20

Summary: Oil rebounded, PTA and MEG fluctuated, Polyester chip weakened, Polyester filament yarn promoted, PSF slow and rebounded, VSF rose.

1,Oil prices fluctuated and closed up this week. Oil prices closed down on Monday. News that countries have successively announced to implement production cuts has encouraged investors who are bullish on oil prices, which push oil closed higher on Tuesday. Due to market concerns that some countries may usher in the second round of the outbreak of the COVID-19 epidemic, which further extended outdoor restrictions, oil prices closed down on Wednesday. As the International Energy Agency’s forecast of a recovery in oil demand, the market sentiment has been boosted and oil prices rebounded on Thursday.

2,PTA futures fluctuated at a narrow range, the spot basis strengthened, and spot prices fluctuated. At the beginning of the week, crude oil was sorted in a narrow range, polyester production and sales remained low, PTA buying was weak, and the basis was stable. In the middle of the week, the purchasing atmosphere was boosted, the transaction volume was large, and the basis was slightly strengthened. However, based on the current supply and demand situation, PTA inventory continued to accumulate. Due to the limited boost in polyester production and sales, trading volume fell again on Thursday. On Friday, the rise in crude oil boosted the rise in PTA futures, the basis rose, and spot prices rose too. As production reductions in oil-producing countries have been implemented one after another, crude oil rebounded at a low level to give PTA price support, but PTA supply and demand are excessive.

3,MEG prices are firm and upward, and the market is generally negotiating. In the first half of the week, MEG prices were sorted in a narrow range, and the overall trading was average. Traders changed hands mainly, and the overall buying was more cautious. In the second half of the week, the MEG price was firm and the spot transaction volume was heavy increased. Foreign lockdown has been moderately relaxed, demand  have improved month-on-month, polyester production and sales went up in stages, and short-term polyester loading rate is expected to remain high. MEG’s domestic equipment maintenance is concentrated, the supply and demand pattern has improved month-on-month, and MEG has a support.

4,Polyester bottle chip maintained a range consolidation, with a slight increase on Friday as the performance of polyester raw materials was firm; On the export side, the prices of the Asian polyester bottle chips  are more stable, and some have been moderately raised. Some overseas customers have replenishment in the vicinity of low price levels.At present, the cost of upstream raw materials has increased, but it is still at a low level. The processing range of polyester bottle flake factories is still relatively large shortly. Since May, the speed of shipment has slowed compared with the previous period, and the inventory may have accumulated. The market price of short-term spot orders may continue to maintain a strong trend.

5,Polyester textile chip fell slightly, and the demand side was generally weak. In the first half of the week, the chip prices fell weakly, and traders dumped at low prices. However, with the sharp rise in crude oil in the second half of the week, the polyester raw materials rose, and the market trading atmosphere was obvious boosted. It rebounded slightly after the price stopped falling. Market transactions were light in the first half of the week and buying increased in the second half of the week. The trading volume was mainly concentrated on Friday

6,Polyester filament yarn prices in Jiangsu and Zhejiang fell to promote sales. The production and sales were light after Labor holiday, and the inventory accumulated. In order to promote sales, polyester yarn factories lowered the price. Until Friday, As the raw materials rose, polyester yarn discounts were reduced. The price of polyester yarn in southern China is more stable. In the export market, in May, the overseas unblocking was gradually put on the agenda. At present, the European region has begun to recover, inquiries have increased, and a few orders have been placed locally, but there is still a long distance to return to normal. There are no obvious signs from other countries. The overall export showed a weaker month-on-month improvement trend. It is expected that the price of polyester yarn will remain fluctuation  in the short term

7,Polyester staple fiber sales were weak. Continuing the light trend of last week, PSF transactions were still sluggish this week. Most spinning mills digested pre-stocks and seldom purchased. Due to the lack of inventory in the staple fiber factory, prices tended to drop slightly. Raw materials rose sharply on Friday, the PSF stopped falling, transactions volume increased significantly, and some factory prices rose. The inventory of the PSF factory increased slightly.

8,Viscose staple fiber continued to increase in quotations when VSF factory holds a large number of pre-sale orders, new transactions were very rare this week. The downstream order execution is relatively normal. The super-white VSF performance has been relatively moderate, with market prices at 11000-13000 yuan / ton level, and some new suppliers actually executing at a lower level. Other differentiated fibers did not perform very well. In the overseas market, with the deregulation of various countries, some enquiries have increased significantly, but the firm order still is not much. In the short term, market prices are expected to remain firm.

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