NOACY Futures: PTA Supply and Demand Weak, Mainly Driven by Cost

NOACY Futures: PTA Supply and Demand Weak, Mainly Driven by Cost

April 2, 2025 08:57

During the night session, PX and PTA followed the oil price fluctuations. The gasoline crack spread rose and fell, while PX production declined, leading to an improvement in supply and demand. However, the persistent sluggishness of terminal orders continued to drag down market sentiment, causing PX valuation to fluctuate at a low level, mainly driven by crude oil. PTA production recovered from a low level, but downstream filament and short fiber maintenance increased, resulting in weak supply and demand for PTA, which was mainly driven by cost.

Ethylene Glycol: Ethylene glycol supply remains at a high level. The increase in maintenance of synthesis gas method facilities was offset by the expected decline in polyester production, which negated the positive impact of ethylene glycol production cuts. Weekly arrival volumes increased, leading to weak supply and demand, with night session fluctuations. There were reports yesterday of a decline in overseas loading, and attention should be paid to the impact of supply changes on the market.

Short Fiber & Bottle Chips: Short fiber production increased, and the industry continued to reduce inventory, leading to an improvement in fundamentals. However, the continuous decline in processing margins led to an increased willingness of enterprises to cut production. Sales increased yesterday, and attention should be paid to the opportunity for processing margins to recover from a low level due to a decline in industry production. Bottle chip futures prices fluctuated, and the recent restart of facilities led to pressure on processing margins, which quickly fell to a low range. Absolute prices were mainly driven by cost.