Home / Knowledge / News / Textiles / High crude fails to stimulate PTA prices
High crude fails to stimulate PTA prices
21
Apr '08
Sky-rocketing international crude oil prices failed to speed up PTA prices in the domestic front. Since March 24, Zhengzhou PTA has seen slump of as much as over 600 points, depicting a severe fall after it rebounded during New Year festival.

The main reason behind the poor performance of PTA is that, during April textile and apparel demand failed to show any sign of prosperity. In this time, resulting in poor demand from downstream PTA market, particularly terminal demand has lost confidence; the market has overlooked increased PTA support from downstream crude oil under the prevailing atmosphere of pessimism.

On one hand, after international crude oil prices surged, PX spot supply and demand of global market seemed tight and re-gained momentum for short term transactions with increased PTA cost support. On the other hand, PTA underwent a substantial adjustment in previous time; domestic PTA spot has declined nearly 300 yuan per ton below costs. Therefore, PTA requests short-term technical rebound, but terminal demand deterioration will inhibit its rebound space.

In the past week, domestic market of PTA was relatively dull, but PTA spot market saw stability. Mainstream price ranged 7750-7800 yuan per ton, for cash payment and out cans, by the end of the week. Mainstream offers from Taiwan and South Korea were still stable at US $965-968 per ton (CFR China 90 days).

Calculated on April PX price at $1260 per ton CNF China settlement, cost of domestic PTA providers is about 7,950 yuan per ton, it will be more higher to likely about 8,050 yuan per ton, if taking consideration of increases of other material costs in 2008, in this case, domestic manufacturers will lose nearly 300 yuan in producing one ton of PTA. It is also expected that majority of domestic PTA manufacturers will cut back their production.


Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search