Zhengzhou PTA futures opened lower on July 13, then gradually edged lower and declined by the end of the day. Main contract 1009 closed at 7,098 Yuan / ton, down 172 or 2.37 percent from the previous day.
Crude oil market is expected to remain in short-term shocks, as it is not able to find directional break in price movement. PTA opened lower due to the influence. However, downstream production is positive, so market decline has slowed down.
In spot market, offers for domestic PTA spot fell to around 7,050 Yuan, due to price drop of futures, bids from buyers declined to around 6,950 Yuan / ton, transaction level was around 7,000 Yuan / ton.
Offers from sellers for Taiwanese spot were US $855-860 / ton; few buyers sent counteroffers and discussion level centered at $850 / ton. Offers from sellers for Korean spot were $835/ ton. Intention from buyers was US $830/ ton or lower.
In MEG market, offers for domestic spot were around 5,850 Yuan / ton, offers for small quantity were 5,850-5,900 Yuan / ton, real transactions were light. Offers for overseas cargo were around $710 / ton, bids from buyers were US $700-705 / ton.
MEG quotations on bonded goods were reported at $715-720 / ton, bids from buyers were around $710 / ton, some traders made inquiries at lower price, but sellers in general were reluctant temporarily.
In polyester market, overall offers of filament from Jiangsu and Zhejiang were stable, individual plants in some areas increased price by 100-200 Yuan/ ton. Polyester staple fiber was steady, mainstream price was 9600 Yuan / ton.
Paraxylene ended $7 lower on Monday. FOB Korea closed at $829-830 / ton, CFR Taiwan closed at $844-846 / ton. Meanwhile, downstream polyester market was weak in production and sales.
From the Chinese PTA supply and demand perspective in the first five months of 2010, production stood at 5.72 million, imports touched 2.72 million tons and demand reached 7.5 million tons.
Market fundamentals of PTA remain bearish, as both upstream and downstream sectors appear weak, market traders face mentality pressure, in addition, there is no good news from macroeconomic policies.
Fibre2fashion News Desk - China