In the first week after May Day holidays, PTA spot and futures markets fell sharply due to the impact of the dramatic changes in the external macro environment.
In the first few days after the holidays, trading interest in spot market appeared insufficient because of weak sales of polyester products over the weekend, cash transactions were in deadlock.
Sellers offered at 8,050-8,100 Yuan / ton for small spot supply, transaction negotiation was around 8000-8050 Yuan / ton. Some foreign traders were still on vacation; therefore, discussion was not active.
Offers for general spot cargo from Taiwan were around US $985-995 per ton, but buyers did not show strong intention. Korean stock was quoted at $960-965 per ton; but transactions were around $955-960 per ton, in those days.
Euro debt crisis escalated during the mid-week time, stocks and commodity markets sharply declined, market emotion set back. Domestic PTA market fell to about 7,900-7,950 Yuan per ton on Thursday, while offers for overseas supply were around $965-970 per ton.
International crude prices fell further below $75 mark on Friday, while Dow fell 1,000 points in a single day. Spot PTA was more sluggish. Domestic goods traded around 7,750-7,800 Yuan per ton.
Offers for overseas stock was at $960 per ton, however buyers were quoting at around $950 per ton in the afternoon, one deal of bonded goods was reached at $945 per ton. Some sellers offered $930-935 per ton for Korean stock.
Fibre2fashion News Desk - China