Market this week – W31

Summary: Oil closed up, PTA rose, MEG fluctuated, Polyester chip rose significantly, Polyester filament yarn promoted and rose, PSF fluctuated, VSF increased slightly.


1,Oil prices fluctuated and closed up this week. Recently, the Delta virus mutant has spread rapidly in various countries around the world. Investors are worried that the epidemic will impact the global economic recovery. At the beginning of the week, crude oil prices fell slightly. In the middle of the week, the market expects that the supply of crude oil for the rest of this year will continue to be tight. At the same time, after the US crude oil supply hit the lowest level since January 2020, the supply will be further tightened and crude oil prices will rise slightly. This week’s U.S. crude oil inventories fell more than expected, but fears about the epidemic have increased, limiting the increase, and WTI crude oil prices closed up slightly.


2,PTA fluctuated and rose. Oil prices rose this week, and PX rose slightly. Supplier inventories have dropped significantly, and PTA futures have performed strongly. In terms of spot market, at the beginning of the week, due to the influence of typhoon weather, the port was closed, the operating load of the new Yisheng facility was unstable, and the transportation volume of tank trucks decreased. As a result, the supply of PTA in polyester plants is tight, and some polyester plants are running at a reduced load. However, under the situation of tight spot liquidity, the basis performance is strong. In the middle of the week, as the impact of the typhoon weakened, the Yisheng device was restored, the port began to unload, and the supply of tankers was restored, and the basis was loosened. In the short term, crude oil will remain volatile and consolidate, but fears about the epidemic still exist and the upside is limited. The overall performance of PTA is relatively strong.


3,MEG prices rebounded from low levels, and the market trading volume was general. In the first half of the week, the price of MEG fluctuated weakly, and some polyester factories fell under the influence of the typhoon. In the middle of the week, port inventories were running at a low level. Boosted by the temporary shutdown of the South Asian installations in the United States, MEG futures increased, and the spot buying orders on the market followed actively, and the night trading surged sharply on Thursday. As of Friday, the price of MEG has fallen from a high level. In the short term, MEG is operating with low inventory, and MEG prices are mainly adjusted in a wide range.


4,Polyester chips price has risen significantly, mainly driven by rising costs. During the week, crude oil remained strong, and polyester raw materials continued to rise. Especially in the second half of the week, PTA set a new high. Although the demand side performance was weak, but driven by the cost, the polyester chip factory’s quotations were raised one after another, and signed prices were negotiated and moved up gradually. Recently, after the polyester cost has risen sharply, the terminal’s follow-up efforts have been limited. In addition, the efficiency of polyester chips is at a significant loss, and subsequent reductions and suspensions may be continued. It is expected that the short-term polyester chip prices will mainly fluctuate at a high and wide range.


5,Polyester filament yarns in Jiangsu and Zhejiang was promoted at the end of the month. Due to the impact of typhoon weather on downstream operations and the recent weakening of terminal orders, polyester filament factories have low equity inventory, but due to slow delivery in warehouse, the actual inventory is high, polyester filament factories promote some high-stock specifications at the end of the month. But due to the sharp increase in the cost of polyester raw materials this week, the quotations of polyester filament factories began to rise on Friday. The quotation of the South China polyester yarn factory rose, and the transaction was negotiated. In the export market, export quotations rose slightly, and actual transactions were negotiated. Recently, the overall export orders are still weak. Under the background of high freight rates, foreign customers are less enthusiasm for inquiries and basically maintain rigid demand purchases.


6,Polyester staple fiber remained fluctuated. PSF’s losses have gradually increased, and the production cut down has increased. On Monday, PSF futures rose slightly and then fell back, and the spot market also gradually followed the decline. At the same time, polyester raw materials rose, and PSF cash flow losses gradually expanded. On Thursday night, PSF main manufacturers collectively raised prices. In Friday morning, other PSF factories followed up and raised their quotations. Due to the rising inventory of PSF and the recent serious losses, PSF factories have become more willing to reduce production.


7,VSF continued to rise, small and medium-sized factories rose rapidly, but the quotations of large factories were relatively stable. The quotations of mid-to-high-end brands are upside down. As it has a more obvious cost-effective advantage compared to mid-range fibers, the low-priced parts of high-end brands sold well this week. Non-woven fibers rose slightly this week. The black fiber remained stable for the time being, and the sales was relatively good. The export market is performing normally. The overseas market experienced the Islamic Eid al Adha in the early period, and some procurement operations have been postponed. At the same time, due to the rebound of the epidemic in some countries, the market has been worried, and export prices have temporarily stabilized.The VSF market is relatively good recently, and the downstream has a certain price transmission capacity, and the risk of price decline in the short term is not high.