PTA market expected to fluctuate

28 Dec '09

2 min read

The main PTA futures contract 1002 at Zhengzhou market closed at 7,848 Yuan / ton on December 25, up 84 points, or 1.08 percent compared with the previous trading day. With overnight effective support from outside market trends, PTA market maintained its strong momentum. But since domestic market look weak in recent times, fluctuations are expected in the upcoming days.

Settlement price of December contract among major domestic suppliers of PTA was at 7,950 Yuan / ton, higher than market expectations, sales of downstream polyester filament sector rebounded. PTA futures opened higher, inquiries for PTA spot also increased, the low-level of buyer' bid rose to 7,550 Yuan / ton while, seller's offers were at 7,650-7,700 Yuan / ton.

Overseas offers were active on the day, mainstream talks for Taiwan and South Korea manufactured spot goods traded at US $915-920 per ton, which stood at $910 per ton in early morning trades. A spot deal was made at $910 per ton for goods of Thailand origin and one QTA (Quick Turn Around) spot cargo was transacted at $895 per ton in Jiangsu market.

In the spot market, inquiries began to increase and mainstream discussions rebounded to 7,550-7,650 Yuan per ton and short-term rigidity demand in downstream market appeared, sales of polyester filament factories in Jiangsu and Zhejiang picked up significantly.

Fibre2fashion News Desk

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