NOACY Futures: PTA Industry Processing Margin Stages Recovery

NOACY Futures: PTA Industry Processing Margin Stages Recovery

February 19, 2025, 08:56

Night session PX and PTA prices fluctuated with crude oil. PX industry operations are at high levels, with upcoming fundamentals such as a decline in Asian PX operations and rising downstream chemical demand favoring supply-demand improvement. Coupled with U.S. summer gasoline blending demand, a medium-term seasonal valuation recovery is expected, with absolute prices driven by oil prices. PTA maintenance shutdowns increased, while downstream demand recovered, leading to phased recovery of industry processing margins.[Ethylene Glycol]

Short-term port inventory accumulation in ethylene glycol weighed on prices, which remained weak. However, rising overseas plant maintenance is expected to reduce imports, and domestic maintenance is also starting, shrinking supply. Given low production in the new year, medium-term supply-demand may improve, favoring a bullish stance on dips, while noting energy risks.[Short Fiber & Bottle Chips]

Downstream operations rebounded, improving short fiber market supply-demand and stabilizing industry inventories. Low production this year may enhance market supply-demand dynamics, limiting downside in processing margins. Focus on downstream production recovery and restocking pace, positioning for processing margin recovery on dips. Bottle chip prices mainly tracked raw material fluctuations, with processing margins hovering at low levels amid oversupply. Medium-term focus remains on cost drivers.

(Source: NOACY Futures)