SunSirs: Supply of Goods is Sufficient, Price of PTA in the Chinese Market has Weakened, a Drop of 2.33%

　　On September 29, the average domestic PTA spot market price was 5083 yuan/ton, down 2.49% from the previous day. In the futures market, the main futures (2201) closed at 5108, down 122, or 2.33%.

　　The supply of PTA is sufficient, the inventory is accumulated slightly, and the trend of destocking for 6 consecutive months is ended. Although there are several sets of PTA devices planned to be overhauled, Hengli Petrochemical announced that it will supply 60% of the contracted supply in October. However, the downstream demand weakened, the traditional demand for polyester and terminal weaving was not in the peak season, the production of looms in Jiangsu and Zhejiang was reduced, and the operating load fell below 50%. At the same time, international oil prices fell slightly on the 28th, weakening support for PTA costs.

　　The current high level of crude oil and cost support still exist, but the PTA market has sufficient supply and insufficient demand. The overall market sentiment has cooled before the National Day. It is expected that the short-term PTA market will be weak and the main focus will be consolidation.