Market trend week 14- Oil PTA MEG PET PSF VSF

Summary: Oil fluctuated up, PTA rose, MEG fluctuated, Polyester chip stabilized, Polyester filament yarn rose slightly, PSF rebounded, VSF loosened.

Market this week – W14

Summary: Oil fluctuated up, PTA rose, MEG fluctuated, Polyester chip stabilized, Polyester filament yarn rose slightly, PSF rebounded, VSF loosened.

 1,Oil prices fluctuated up this week. On Monday, the giant container ship “EVER GIVEN” that blocked the Suez Canal has resurfaced and set sail again; it is expected that the current scale of production reduction will continue at the OPEC+ meeting, and on this basis, Saudi Arabia will voluntarily reduce production by 1 million barrels per day; the two major crude oils Futures closed slightly higher on Monday. Crude oil futures closed down 1.97% on Tuesday, as producers’ price cuts and promotions indicated that oil supplies were sufficient, expectations that US inventories continued to rise, and the Suez Canal resumed navigation also put pressure on oil prices. The two major crude oil futures fell on Wednesday because the new European blockade intensified concerns about fuel consumption and the OPEC technical team’s pessimistic view of the outlook for crude oil demand. On Thursday, the two major crude oil futures closed up sharply.


2,PTA spot prices rose. At the beginning of the week, crude oil continued its upward trend, and the price of PTA rose following the cost-driven. In the middle of the week, as crude oil prices fluctuated and weakened, PTA prices fell. On Thursday, OPEC+ decided to reduce its output, but it is expected that demand will resume, crude oil rose sharply and PTA prices rebounded. The overall liquidity of PX is limited, and the price may fluctuate strongly. There is a support for PTA prices from the cost side. In April, a number of devices were planned to be overhauled, PTA supply and demand continued to be de-stocked, spot liquidity was low, and processing fees rose slightly. The short-term PTA is expected to maintain a volatile trend.


3,MEG prices are wide fluctuation, and market transaction is acceptable. In the first half of the week, the MEG market fluctuated widely and the spot basis was stable. In the middle of the week, prices fell rapidly due to individual device news and the drop of Oil. In the second half of the week, the price of MEG rebounded due to the strong crude oil market. MEG has been in a game of strong reality and weak expectations, and the overall price fluctuates widely. MEG social inventories continued to decline slightly in April, and overseas supply remained low. The polyester industry is currently operating at a high level, and the short-term rigid demand support is relatively strong. It is expected that the short-term MEG market will fluctuate.


4,Polyester chips stopped falling and stabilized. As crude oil gradually stopped falling and PTA equipment was overhauled, polyester cost support began to appear. In addition to the end of the month, downstream purchases began to increase, market trading atmosphere recovered,, the chip prices gradually stabilized. It is expected that polyester chips prices may stabilize or may rebound slightly.


5,Polyester filaments yarn in Jiangsu and Zhejiang increased slightly under the rising atmosphere. Last week, crude oil pulled up in late trading. Major polyester filament manufacturers publicly stated that they would not promote sales at the end of the month and will raise the price in April. Relying on the concentration of production capacity of large factories, downstream factories are worried about rising yarn prices, and some downstream factories with less raw materials stock took the initiative to replenish yarns before and after the Tomb Sweeping Day, driving the production and sales of polyester filaments yarn, and the prices are partially increasing. The price of polyester filament yarn in South China dropped slightly. In terms of export sales, the export quotations of polyester filaments yarn went up and down mixedly, which was generally stable compared to last week; export orders were flat this week, but shipments increased significantly.


6,Polyester staple fiber stopped falling and rebounded, trading volume on Friday increased significantly. Last week, PSF maintained a weak trend, and prices gradually fell. With the news of traders’ factory warehouses, the PSF futures market has run out of negative benefits. There was a sharp rise on Friday. Downstream traders and spinning mills concentrated on replenishing their positions and the volume of transactions increased. Some spinning mills are still in the wait-and-see stage, and there is still the possibility of continuous replenishment in the later period, and the PSF factories would gradually increase prices.


7,Viscose staple fibers are slightly loosened, and the loose parts are mainly small and medium-sized factories, and the quotations of large factories are generally firm. The downstream viscose yarn weakened relatively quickly, and some excessively low prices appeared in some areas. A few spinning mills started to replenish as rigid demand, but the procurement still sought low prices. In the export market, there have not been many inquiries in foreign markets recently, and foreign buyers are also in a wait-and-see mood. The downstream viscose yarn and cloth are obviously sluggish. For viscose factories, although there is certain pressure, the current inventory level is still within a tolerable range. With the sporadic increase in rigid demand, there may be some loosening next week, but there is no significant drop signals.