Zhengzhou PTA futures on the 28th experienced a narrow range of fluctuations, surging significantly at the close. The main contract for May 2012 closed at 9086 yuan/ton, up by 34 yuan/ton. International tensions were temporarily alleviated, and the domestic downstream polyester-polyester sales rate showed signs of recovery, causing the PTA spot price to rebound as well. However, there are still no clear signs of the traditionally anticipated peak textile season. Terminal textile demand remains weak. As terminal weaving machine operations gradually return to normal levels, the process of destocking is still ongoing. It is expected that Zheng PTA will continue with short-term fluctuations.
The New York Mercantile Exchange (NYMEX) crude oil futures closed lower on the 28th due to profit-taking by investors and increasing concerns over the recent spike in oil prices harming economic growth. The settlement price for NYMEX April light sweet crude oil fell by 2.01 dollars to 106.55 dollars per barrel, a decrease of 1.9%. The settlement price for ICE Brent April crude oil futures fell by 2.62 dollars to 121.55 dollars per barrel, a drop of 2.1%.
In terms of upstream PTA, due to the impact of Western sanctions, Iran's oil production and sales have declined, keeping crude oil prices in a strong fluctuating state. Speculators have increased their net long positions in NYMEX crude oil options, leading to an increase in the external market PX price by 13 dollars to 1665 dollars/ton. The production cost of PTA is around 9200 yuan/ton. In 2012, PTA capacity expanded to 30 million tons, an increase of 50% compared to 2011 and a doubling from the end of 2010. This significant expansion in capacity is notable.
In the domestic market, overall market confidence remains relatively weak. Strong raw material costs and weak downstream demand have created a conflicted mindset in the polyester staple fiber market. Some quotes have been adjusted downward. In terms of pricing, polyester staple fiber prices dropped by 50 yuan to 11650 yuan/ton; bottle chip prices remained stable at 11750 yuan/ton; polyester chip prices decreased by 25 yuan to 10850 yuan/ton. Currently, the operating rate of weaving machines in the Jiangsu-Zhejiang region has dropped to 63%.
Downstream, the overall sales of polyester filament in the Jiangsu-Zhejiang region have improved compared to last week, with total sales rising between 80% and over 100%, although sales at some high-priced factories have not yet significantly improved. The overall stability of polyester filaments in the Xiaoshao area persists, with slight declines in some areas. Currently, inventory levels remain high across companies, and effective sales continue to be a key selling condition. In the Wuxi area, mainstream polyester filament companies maintained their quotations, with discounts negotiated at 100 yuan/ton upon successful transactions.
This article comes from Global Textiles Network. Please indicate the source when reprinting! Effective sales remain the primary sales condition for each company. Prices for polyester staple fibers fell by 50 yuan to 11650 yuan/ton. Bottle chip prices remained steady at 11750 yuan/ton. Polyester chip prices fell by 25 yuan to 10850 yuan/ton. The current operating rate of weaving machines in the Jiangsu-Zhejiang region has dropped to 63%.