SunSirs: Downstream Demand for Production Cuts Fell, PTA Prices Fell Slightly

　　As of August 16, the average domestic PTA market price was 5,212 yuan/ton, down 2.22% from the previous day and up 43.59% year-on-year. The main futures 2201 closed at 5146, down 132, or 2.50%.

　　Part of the PTA plant restarted, and the supply increased slightly. At the same time, due to the weakening of terminal weaving orders and the continued deterioration of profit levels, the recent downstream polyester plant reduction and shutdown plans increased. Market news stated that the four major polyester plants plan to start reducing production by 20%. The start of the ester plant will further decline, the demand for PTA will weaken, and the destocking speed will slow down. In terms of costs, there are many uncertainties in the international oil market, and oil prices will continue to fluctuate widely in the short term.

　　Although the current PTA supply end is limited and the spot supply shortage continues in some parts of East China, the downstream polyester plant will enter a state of reduction and shutdown, resulting in a decline in its demand. I am afraid that the previous long-term destocking situation will be broken. Therefore, It is expected that PTA prices will mainly operate in a weak and fluctuating manner in the short term.