Crude Oil, Chemical and Fiber Market Week 21

Please check the market trend of Week 21:

Data this week – W21


Market this week – W21

Summary: Oil continue to rose, PTA and MEG rebounded, Polyester chip rose, Polyester filament yarn increased, PSF stabilized after rising, VSF maintained.

1,Oil prices closed up this week. International oil prices hit their highest close in more than two months on Monday, continuing the recent upward momentum as investors increasingly believe that supply and demand relations are beginning to improve. Many signals indicate that the world economy is gradually recovering, crude oil and fuel demand are recovering from the bottom, and oil prices continue to rise on Wednesday. As production cuts in various countries rebalanced the markets hit by the epidemic, hedge funds poured in, and oil prices continued to rise on Thursday, achieving a seventh consecutive day of increase.

2,PTA market rose first and then declined. In the first half of the week, the increase in crude oil expanded, and some suppliers actively sell, but the market was worried about the temporary shutdown of Hanbang equipment, and traders’ offers decreased. At the same time, with the increase in PTA prices, polyester factories were cautious in buying when they were fully stocked, and the spot transaction volume was general. In the middle of the week, a 2.2 million-ton PTA plant was shutdown, the demand for purchases from surrounding factories and traders, and the PTA repurchase by individual suppliers boosted the spot basis. However, due to the high processing profit, some equipment maintenance plans were delayed. adding the accumulation of inventory, coupled with the drop in crude oil on Friday, the decline in PTA futures expanded, the spot weakened.

3,MEG prices soared and then down, and the market was generally negotiating. In the first half of the week, MEG prices fluctuated upwards, and the overall performance of chemical products was acceptable. Spot prices rose strongly, and some traders actively replenish their contracts. In the second half of the week, MEG prices rallied and fell. Among them, due to the shut down impact of individual devices, market sentiment was boosted, spot prices rose, and the market’s intention to sell on high was strong.

4,The polyester chip market has risen significantly. With the continuous rise in crude oil, the cost of polyester rose sharply during the week, driving the market sentiment to heat up again. The price has continued to increase, and the market turnover has been increased significantly. In the second half of the week, as material price turned downward, The market transaction dropped.

5,Jiangsu and Zhejiang polyester filament yarn prices rose. Driven by the effective rise of raw materials, Jiangsu and Zhejiang looms and texturing production ratio started to increase, and the replenishment of raw materials further increased. For producers, The production and sales of polyester yarns expanded continuously and inventory declined, especially for some large factories, and the price increased significant. Among them, The biggest increased item is FDY. The price of polyester yarn in South China has moved up. 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 areas. The overall export showed a weaker month-on-month improvement trend.

6,Polyester staple fiber stabilized after rising, and sales were normal. Continuing last Friday’s upward trend, PSF price continued to rise due to rebounded material price and quite low inventory early this week. However, after the downstream replenished, the market entered the digestion and wait-and-see period, and the trading volume dropped significantly. In the second half of the week, the PSF stopped rising and stabilized. Sales were generally light.

7,After the viscose staple fiber was quickly pulled up, the overall implementation situation this week was average. In the first half of the week, high-end brands tried to maintain high prices, but sales were not good. In the second half of the week, the prices of high-end brands also loosened, on the one hand because of the large price gap with the mid-end, and on the other hand because the downstream yarn market did not continue to perform well.

Recently, the suppliers of high white fiber have increased, but market were still dominated by traditional suppliers. There are still a large number of orders to be executed. On the export side, some firm orders  began to increase, but overseas buyers had limited ability to accept high prices.

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