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

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Ritu Kumar
Label Ritu Kumar

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search