Crude Oil, Chemical and Fiber Market Week 22 May 31, 2020

Crude Oil , PTA and MEG , Polyester chip, Polyester filament yarn, PSF Updated market trend of Week 22:

Data this week – W22


Market this week – W22

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

1,Oil prices fluctuated.  After the Memorial Day holiday ended, the US market resumed trading. The signs of a slow recovery of the global economy from the outbreak of the epidemic have pushed Wall Street’s risk appetite to generally rise, and pushed up oil prices to close higher on Tuesday. On Wednesday, after the British Columbia High Court of Canada announced that Meng Wanzhou met the extradition criteria for “dual criminality”, the geopolitical tensions between China and the United States further escalated, and investors’ confidence in the economic restart was severely reduced. In addition, the market expected that the demand for US crude oil would decrease , Oil prices closed down. On Thursday, the Saudi crown prince and Russia made a call. Russia indicated its willingness to extend production cuts, which pushed oil prices to close higher.

2,PTA adjusted narrowly. Crude oil fluctuated, PX prices fell slightly under high inventory pressure, and at the same time, rumors of PX equipment maintenance increased. PTA futures fluctuated, and the basis performance was stable. In the second half of the week, the basis rose due to higher production and sales volume and supplier bids. In general, with the increase in PTA prices, polyester factories are not willing to chase rising prices, and mainly purchase more according to the appropriate amount of production and sales.

3,MEG prices are sorted in a narrow range, and market negotiations are general. Traders in the market mainly sell high and buy low. At the beginning of the week, MEG prices fluctuated upwards, and traders with contract gaps actively participated in replenishment, with spot transactions prevailing on that day. Afterwards, MEG shocked and sorted, and the buying were generally moderate. Individual polyester factories participated in spot purchases. The spot futures spread was basically stable during the week. The domestic supply of MEG remains at a low level, MEG price has a support in short time.

4,The polyester chip market fluctuated within a narrow range, and the trading sentiment dropped significantly. The high prices of some factories have been lowered, but the trading volume is limited. The short-term polyester cost end does not fluctuate much, and the stock of the chip factory is low, but the downstream stocks are more, and the short-term terminal improvement is not obvious.

5,Jiangsu and Zhejiang polyester filament yarns are promoted at the end of the month. Under the fluctuation of raw materials, the enthusiasm for downstream purchases of polyester yarns at high prices is relatively weak, while the sale willing of filament factories is relatively high at the end of the month. The price of polyester yarn in southern China is more stable. With regard to the export market, foreign countries have not yet recovered from the epidemic. Together with the current month of Ramadan, the market performance is quiet, with sporadic low orders being heard.

6,PSF weakened slightly and transactions were light. Polyester raw materials fluctuated, PSF sales were not smooth, and prices were moderately down, but the decline was not large because the factory had no inventory. Downstream spinning mills mainly digest stocks in the early stage. Sales continued to be poor, and inventory gradually accumulated, but most of them were still in arrears or out of stock.

7,After viscose staple fiber has generally suffered a deep loss, mainstream factories generally have a strong willingness to reverse losses. Product prices have risen intensively. At the beginning of the week, the price of viscose staple fiber continued to loosen, and in the middle of the week, it was learned that the viscose factory might have exchanges on turning losses, and there was a slight increase in buying. In the second half of the week, various factories announced to increase price. High white VSF is stable and weak. Other differentiated fibers have no outstanding performance. In terms of exports, there was no obvious improvement this week. Inquiries increased while real confirmed order is limited.

Leave a Reply

Your email address will not be published. Required fields are marked *