SunSirs: Favorable Cost Boosts PTA Futures Prices

　　On June 16, the domestic futures market closed markedly, and most energy and chemical products rose. PTA rose by more than 3%, styrene and fuel rose by more than 2%, and urea fell by more than 4%; non-ferrous and black products were among the top decliners, and Shanghai nickel fell Nearly 4%, thread fell by nearly 3%, hot coil, Shanghai copper, and glass fell by more than 2%; fats and oils all fell, and vegetable oil fell by more than 2%.

　　Specifically, the main force of PTA futures 2109 closed at 4880 yuan/ton, up 148 yuan/ton, or 3.13%. The spot market followed up, with an average market price of 4,843 yuan/ton, an increase of 2.36% from the previous day’s price and a year-on-year increase of 32.42%.

　　International crude oil prices continue to refresh their highs since October 2018. In this context, the PTA market has clearly gained cost support. At the same time, with the consumption of terminal supply during the Dragon Boat Festival holiday, the supply of PTA circulation in some areas is still insufficient, which is also beneficial to the market.

　　In the short term, cost boosting and tight spot liquidity are driving forces. In the market outlook, the terminal textile is off-season and the expected production of PTA’s new production capacity is restricted. It is expected that the PTA price may still rise, but the increase will be narrowed.