PTA: Tight supply and demand, considerable profits

Looking at the PTA market in the first half of the year, the overall price was higher than the same period last year, especially the profits of the entire industry chain were tilted towards PTA, and the manufacturers made good profi.

Tight balance will continue

For the market in the second half of the year, Jinlianchuang analyst Qiu Qianqian said that supply has a greater impact on the trend of the PTA mark.

Wang Chunming, general manager of Shandong Ruiyang Chemical Trade .

From the market trend in the first half of the year, it is not difficult to see that maintenance, production restriction and even repurchase of spot products have become the regulators for PTA manufacturers to deal with the market and get rid of the unfavorable situati.

High profits are expected to continue

Since March, the profit margin of PTA has increas.

In this regard, Zhongyu Information analysts said that an important factor for PTA's huge profits is that due to the commissioning of the Dalian Hengli PX plant, the price of raw materials has dropped sharply, giving profits to downstream produc.

It is understood that in March this year, Dalian Hengli's first 5 million tons/year PX plant was officially put into operation; in early May, another 25 million tons/year PX plant was also put into production, with a total production capacity of 5 million tons/year, accounting for 23% of China's total production capaci.

"Before the new plant was put into operation, China's PX dependence on foreign countries reached more than 50%, the market's right to speak was weak, and the profits of the industrial chain were basically concentrated on PX produc.

Wang Chunming said that the second half of the year is still a period of concentrated release of PX production capaci.

Industry insiders believe that it is difficult for the PX market to perform well in the second half of the year, so the profits of the entire industry chain may continue to focus on PTA produc.

Low demand creates drag

An Guang, an analyst at Zhongyu Information, said that polyester, as the main downstream, released 3 million tons of production capacity in the first half of the year, which was higher than the 1 million tons of new production capacity of P.

Wang Chunming believes that in the short term, the inventory of polyester factories remains low, and the operating rate is around 90%; the inventory of polyester finished products is low and the production of products is theoretically profitable, and the rigid demand for PTA is stab.

It is understood that the inventory of grey fabrics has been maintained at about 42 da.

Wang Chunming said that the downstream of the terminal will have a bright spot in the "Golden Nine Silver Ten", which will boost the PTA mark.

From the perspective of the macro environment, the Sino-US trade war has affected the export of China's textile indust.