SunSirs: There are Many Negative Factors, PTA Market will Remain down

　　On December 20, the domestic PTA market fell. The average market price in East China was 4560 yuan/ton, down 2.53% from the previous day and up 24.76% year-on-year. The main force of PTA futures 2205 closed at 4568, down 154, or 3.26%.

　　The 2.5 million tons PTA plant of Baihong restarted, and the two 6 million tons of PTA plant in Yisheng Dalian restarted low load. It is estimated that the load will be increased to full load on the evening of December 20. Some large-scale PTA devices are restarting or restarting, and the destocking of the PTA phase is nearing completion.

　　The upstream crude oil fluctuated and fell. On December 17, the settlement price of the main contract of WTI crude oil futures in the United States was reported at US$70.72/barrel, and the settlement price of the main contract of Brent crude oil futures was reported at US$73.52/barrel. Mainly due to the surge in cases of the mutant strain Omicron, the market is worried that the implementation of new restrictions may suppress fuel demand, and oil prices are under pressure.Downstream polyester production and sales are sluggish, PTA spot trading atmosphere is not active, the weaving market remains flat, and the comprehensive operating rate of looms in Jiangsu and Zhejiang has dropped to around 61%. Affected by the epidemic, the market in Xiaoshao and Shao has become increasingly light, and weaving factories mainly produce inventory , The willingness to purchase raw materials is not high, just need to stock up.With the restart of PTA’s own device, the supply side will increase, while crude oil fluctuates weakly and adjusted, and the demand side is weak and the transaction is not prosperous. Because there are many negative factors in the short term, the PTA market will continue to maintain a downward trend.