Rising momentum of NYMEX crude oil futures weakened overnight due to lingering concerns over recent excessive supply. July crude oil futures rose US $0.39 or 0.51 percent to close at US $77.18 a barrel.
Zhengzhou PTA futures opened higher on Monday due to support from slight rise in oil, main contract TA009 opened at 7360 Yuan per ton, intraday highest tested 7546 Yuan per ton, but finally closed at 7484 Yuan per ton.
Led by gains in crude oil, Asian PX market slightly picked up overnight. FOB South Korea rose $3.5/ ton to $913.5-914.5 per ton and CFR Taiwan rose $4 per ton to $929-930 per ton.
Asian PTA spot market was fair. A few offers for Taiwan goods were around $850-855 per ton, inquiries were around $840-845 per ton, actual negotiation was at $845/ ton and some deals were made at this price.
For spot produced by South Korea, most bids from buyers were around $815-820/ ton, but sellers were reluctant to sell at low price.
Trading atmosphere in domestic polyester chip market was better, trading volume increased. Semi-dull polyester chips traded at 9,250 Yuan / ton with 3-month acceptance and shipment to buyer's destination, mainstream price was generally 9,200 Yuan in cash payment.
Super bright chips were sold at 9,300 Yuan with 3-month acceptance and delivery to buyer within short distance; mainstream price was generally 9250 Yuan / ton in cash payment.
Transaction price of CDP slice spot market was 10000 Yuan / ton with 6-months acceptance and delivery to buyer's destination, market price of PET bottle chip was 9850 Yuan / ton, generally to be delivered to buyer's destination.
PTA market is believed to get support from weakened negative factors of external macro economy and rebound in crude oil through short-term, but it still faces a large downward pressure in medium term.