Domestic PTA futures prices rebounded slightly. As of May 25, the average price in the spot market was 4685 yuan / ton, up 1.36% over the previous trading day and 31.08% over the same period last year. The main futures 2109 closed at 4728 yuan / ton, up 100 yuan / ton, or 2.16%.

In the middle of May, with the restart of early maintenance equipment, PTA supply showed an upward trend. In terms of inventory, according to statistics, as of May 20, PTA social inventory has declined to 2.7813 million tons, 2.68 percentage points lower than that of last week. Although there is a downward trend, the decline is slightly narrower than that of last week. But recently, Fuhai’s 4.5 million ton plant took off and dropped to 80% on the 20th, and the 2.5 million ton plant of Hengli No.5 is expected to be overhauled in early June for two weeks. At the same time, the test run of Yisheng new material new plant is delayed, boosting the PTA price in the short term. It is reported that due to the adjustment of plant load, Yisheng contract reduced by 50% in June and Hengli supply reduced by 40% in June.

In addition, recent crude oil continued to rebound, driving PTA cost center upward. On May 25, international oil prices rose slightly. The settlement price of the main contract of WTI crude oil futures market in the United States was US $66.07/barrel, up US $0.02. Brent crude oil futures market settlement price of the main contract at 68.65 U.S. dollars / barrel, or 0.19 U.S. dollars. Affected by this, the PX market was boosted. As of the 25th, the Asian PX FOB price in South Korea was $838 / T, and the CFR price in China was $858 / T.

Downstream Jiangsu and Zhejiang polyester consolidation, production and marketing is tepid. By the 25th, the overall polyester operating rate was around 89%. In terms of production and marketing, the production and marketing of mainstream factories are basically concentrated at about 30% – 50%, and the production and marketing of individual factories are better, reaching about 90%. In terms of inventory, the overall inventory of polyester market is concentrated in 11-24 days, of which POY inventory is 8-11 days, FDY inventory is around 11-15 days, and DTY inventory is about 14-27 days. Due to the stronger cost, polyester factory has the intention to raise the price.

Xia Ting, an analyst at business news agency, believes that PTA prices will rise in the short term due to load reduction, maintenance expectation and rising crude oil. However, the regulatory level will stabilize the price and guarantee the supply, and the bulk commodity market will cool down as a whole. Considering that the downstream demand is tired, or it will restrict PTA’s rebound space, it is expected that PTA prices will remain volatile by the end of the month, but the increase will not be too big.