The main PTA futures contract 1003 in Zhengzhou market closed at 8,262 Yuan / ton on January 11, up 122 points from the previous trading day (January 8), or an increase of 1.5 percent. While the market was strongly supported by costs, low downstream demand remained to be a main resistance, so PTA futures lacked sufficient momentum.
Overall, in the past 12 trading days, light sweet crude oil futures at New York Mercantile Exchange rose for 11 trading days, achieving a total increase of US $10 or 14.2 percent. Although in the Asian market, Paraxylene closed down last Friday, the increase in the last week was $24.5 per ton. Therefore, cost-support to PTA market is still strong.
However, downstream demand is still an important factor affecting the trend of PTA market. Several large polyester factories in Zhejiang have lowered operation rate in January, due to which demand for raw materials from downstream polyester plants continue to shrink.
As it is near the end of Chinese lunar year, sales of textile industry is flat. Demand looks difficult to improve in short term, therefore, PTA market will still face resistance in upward movement.
Fibre2fashion News Desk - China