Recently polyester filament price have started rising, driving PTA spot prices higher and as liquidity constraints have eased, downstream weaving sector will enter period of stocking up on inventories.
Naphtha price is volatile on high level at present. Spread of main products based on crude oil or production profit has moved higher amid shocks since last August, reflecting improved fundamentals of oil market.
Some Chinese domestic PX manufacturers plan to gradually shut down for maintenance in January, due to which supply has decreased, leading to a firmer cost support to PTA.
From a longer-term perspective, rapid amplification of ethylene production capacity results in insufficient naphtha supply. In the fourth quarter of 2010, prices of naphtha, MX and PX rose sharply, of which PX price rose more than 30 percent.
PX price will be difficult to see substantial decline in 2011, which will provide strong cost support to PTA.
According to data from Sinopec, China will have new polyester production capacity of between 3.6-6.0 million tons. As per estimates, new polyester capacity will consume 3.1-5.16 million tons of PTA, which is significantly higher over the new expansion of PTA production capacity.
20240830145952.gif)
20240925092649.png)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
