Cost Impact Come Out PTA Price is Easy to Rise
Author: Aug 08, 2011 15:29
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168Tex News: On 26th, July, ZCE PTA main force contract 1201 is curbed on the surging trend of 9760, and the price is bounced back to 9450. On 3rd, August, PTA spot price surged to 9774, and on 4th August, its bulk goods price slumped, while PTA can recover the price drop immediately. See from which, we can find that with the cost support, PTA spots will surge after a short term of consolidation.
Naphtha price increased. Recently, crude oil price is weakened slightly by the influence of depressed market economic data, but Asian naphtha need is vigorous. European naphtha price is higher than Asian naphtha price. The cheap naphtha gradually come into the European market, and Asian naphtha supply is reduced. Although Taiwan FORMOSA and medium oil naphtha need is still slack, Korean naphtha demand is still vigorous. The Japan demand recovery implies Asian naphtha demand will turn well, which makes the price surge slightly, and forms the cost support for PX. Intense supply and demand situation boosted PX price easy up. On 28th June, the general administration of customs figures show, in June, China PX importation amount is 345.7 thousand ton, decreased 56.8 thousand ton in compare with that of May. Domestic PX importation reduced slightly. There is also a problems with the domestic out put. On 11th July, a fire hazard happens in a oil refinery plant, the 840 thousand ton PX capacity device is forced to stop production. The device is planned to re-start by the end of July, but the oil refinery plant announced that the re-start time is delayed to the middle August. The production stop will apparently reduce PX supply in the China market. Naphtha price surged stably, which forms a strong cost support for PX price. Recently, Asian PX price maintained its up trend. Asian PX August contract price is increased to $1540/t. Asian PX market supply is in short, thus makes PX price strong. Now Asian PX price is generally maintained around $1550-1600/t. Spot price increased stably For the cost support and short supply, PX price is easy to increase. PTA production cost increased. But recently, PTA device breakdown successionally. Most PTA enterprises maintained a high operation rate, and its marketing is well, stock pressure is low, therefore, most PTA manufacturer increased its August contract price to 9600CNY/t. PTA spot price in China market, the stock pressure is also low, and its supply is also in shortage, most suppliers are reluctant to sell up the goods, and now its mainstream quotation is maintained around 9550-9600CNY/t. The trade atmosphere is good, most end-use consumers are still buying in according to need, its market turn over is recovered. To sum up: European, Korea and Japan has a relative big demand for Naphtha, whose price tend to surge up, which forms a strong cost support for PX, while PX importation reduced and its production is also reduced, its price is easy to go up. High PX price contributes a pressure to PTA production, while PTA devices come across problems frequently, its spot goods price is likely to surge. Under the circumstance of forceful spot price, there is still some surge room, spot price will finally hit the line of ten thousand Chinese Yuan. |
Editor: Candy From: 168Tex.com
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