Market trend week 24- Oil PTA MEG PET PSF VSF

Market trend week 23- Oil PTA MEG PET PSF VSF

USD/CNY=6.35

Market this week – W24

Summary: Oil both closed up, PTA fluctuated, MEG fell from high, Polyester chip dropped slightly, Polyester filament yarn continue to promoted and returned, PSF fell slightly, VSF stabilized with tentative increase.

 

1,Oil prices both closed up this week. On Monday, the two major crude oil futures both closed down. OPEC Secretary-General said that in April, OECD oil inventories fell by 6.9 million barrels, and it is expected that they will fall further in the next few months; the OPEC + production cut implementation rate in April was 114%. Crude oil futures prices closed higher on Tuesday, and the market expects that US energy demand will further improve. According to a recent survey, major oil-producing countries have implemented plans to gradually increase production. At the same time, traders are also weighing and considering the forecast that the US domestic crude oil inventory data is expected to decline for the third consecutive week. On Thursday, the U.S. government lifted sanctions on some Iranian oil officials, and U.S. oil futures subsequently plunged in a short-term. The US and Burundi oil futures subsequently rebounded and turned up.

 

2,PTA remained fluctuated in a range. Crude oil remained strong and fluctuated. PX fluctuated weakly at the beginning of the week. In the middle of the week, the price of PX rose due to unexpected shutdowns of individual devices. At the beginning of the week, Sanfang equipment was stopped. In the second half of the week, Yangtze and Yisheng restarted one after another, and the supply was slightly reduced. At the same time, with the recovery of individual installations, the polyester loading rate increased and the supply and demand improved. PTA is expected to maintain a range-bound trend in the short term.

 

3,MEG prices fell from high levels, and market transactions were fair. In the first half of the week, affected by the commissioning of a large-scale new device in China, MEG price fell rapidly. The intention to sell on the market was strong, and the spot transaction price was lower. In the second half of the week, MEG prices were broadly consolidated, and the spot prices were significantly lower than the monthly average prices. During the process, some traders on the market were actively replenishing goods. The cost of MEG cash flow is below the profit and loss line. In the process of strong operation of the crude oil market, MEG cost support is acceptable. It is expected that the short-term MEG market will be subject to turbulence and consolidation, with strong support at the low level.

 

4,Polyester chips dropped slightly. Although crude oil continued to rise and hit new highs, polyester raw materials fell. The chip market saw a general trading atmosphere, and downstream demand purchases increased. However, they tended to purchase at low prices and lacked the willingness to catch up with high offer. Low-level buying picked up in the second half of the week. The short-term cost side continues to fluctuate within the range, and the downstream purchase as actual demand mainly.

 

5,Polyester filament yarn in Jiangsu and Zhejiang continue to promoted. Since the promotion at the end of May, the production and sales of the polyester yarn factory have continued to be weak, and the inventory has risen. At the same time, in order to ensure the efficiency of the texturing process and reduce the risk of production stopping of texturing machine, the polyester yarn factory carried out a promotion on Wednesday. Production and sales were concentrated on Wednesday, and the inventory fell, the price of polyester filament factories returned on Thursday. The South China Polyester filament held steady talks. In the export market, the export quotation was slightly lowered, and actual transactions were mainly negotiated. The recent export orders have improved compared to before, mainly due to the increase in foreign orders for replenishment. At present, the excessively high shipping charges in China have led to a prominent disadvantage in the price of domestic polyester yarn in the international market, and the overall price of polyester filament yarn is expected to be weak.

 

6,Polyester staple fiber is mainly based on negotiation, and factory sales are average. PSF futures fell on Monday, and the spot price fell accordingly. Some factory price hold stable, and the market spreads between high and low prices. Subsequently, due to the continued decline in futures, factory prices gradually followed the decline, while the current spreads strengthened. In the second half of the week, PSF stopped falling and stabilized, and the current low prices in futures gradually rose, gradually moving closer to factory prices. This week, raw materials have fallen more sharply, and PSF cash flow has improved slightly. If crude oil and polyester raw materials do not experience major fluctuations, the PSF is expected to remain range-bound.

 

7,Viscose staple fiber prices were generally stable, with some tentative increases. In the first two weeks, the VSF factory concentrated on signing a large number of orders, and the orders were relatively saturated. Starting this week, quotations have been gradually increased, and the actual execution price has moved up slightly. In the export market, foreign demand is still recovering, with a slight increase in some parts, but it has not yet returned to a normal level. The new offer is slightly higher. The sales pressure of VSF factory in the short term is not great, and the VSF price is expected to be stable in the short term.