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

Apparel/Garments | On 28th Apr 2017

Continue existing Duty Drawback, ROSL scheme post GST: TEA

Tiruppur Exporters' Association (TEA) has made requisitions to...

Apparel/Garments | On 28th Apr 2017

Deckers Brands starts review of strategic alternatives

Deckers Brands, a global leader in designing, marketing and...

Courtesy: AAFA

Fashion | On 28th Apr 2017

Andrew Rosen, Stuart Vevers among AAFA awardees

Andrew Rosen, founder and CEO of Theory, Stuart Vevers of Coach, Nick ...

Interviews View All

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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:
April 2017

April 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



X