According to the price monitoring of the business agency, the domestic PTA market remained volatile and upward on January 17. The average market price in East China was 5258 yuan / ton, up 0.87% from the previous day and 34.84% year-on-year. PTA futures 2205 closed at 5330 and settled at 5332, down 10, or 0.19%.

In terms of supply, the production capacity of 1.2 million tons of hailun Petrochemical was restarted at the weekend, and the load of 2.25 million tons of Yisheng Dalian unit returned to normal on the evening of January 14; Fuhai Chuang’s 4.5 million ton unit was overhauled for three weeks on January 3. There is an expectation of restart, PTA supply will increase, and the current start-up of the industry is around 77%. In addition, in terms of new production capacity, the 3 million ton PTA project of Yisheng new material 2# line has been basically completed and has not been put into operation yet.

Supported by tight supply, oil producing countries have difficulties in increasing production, and factors such as geopolitical tensions in Russia and Ukraine have helped oil prices rise. As of January 14, the settlement price of the main contract of WTI crude oil futures in the United States was US $83.82/barrel, and the settlement price of the main contract of Brent crude oil futures was US $86.06/barrel.

With the boost of raw materials, the downstream polyester market maintained a slight rise, but after the terminal weaving entered January, the startup load and new order receiving volume of weaving factories in Jiangsu and Zhejiang gradually declined, and the weaving factories in Haining, Changshu and Xiaoshao basically ended. At present, the comprehensive startup rate of Jiangsu and Zhejiang looms is around 49%. It is expected that most domestic factories will enter the shutdown and vacation state from the 15th to the 20th of this month.

Business analysts believe that the current high volatility of crude oil and the cost support PTA. However, the demand side is weak, PTA slightly accumulates inventory, and the supply slightly exceeds the demand. It is expected that the upward trend of PTA market will be blocked.