Formosa Plastics PX Explosion, PTA Limit, Revitalize The Polyester Industry Chain

Incident review:

According to China News Agency, Taipei, April, 7 - the three aromatics three plant in maoliao six light industrial area of Yunlin County, Taiwan Province, exploded 14 hours on 7 days, and the fire department decided that the liquefied petroleum gas (LPG) pipeline ruptured by butane tower.

The fire was controlled at 16, and no casualties were found.

The six light is known as the "sixth sets of light oil cracking plant". It is located in the Islands type basic industrial zone in maoliao District of Yunlin county. It is invested and developed by the Formosa Plastics Group. It is the sixth light oil cracking plant in Taiwan and first private refineries in Taiwan.

The explosion of Formosa Plastics involves 870 thousand tons of PX capacity, triggering a big shock in the PTA market, so the polyester industry chain is "fire"!

PTA high jump opened, once the limit, closed up 2.08%!

The explosion of Yunlin aromatics three plant of maoliao six light platform in Taipu, involving PX production capacity of 870 thousand tons, accounts for about 4% of the apparent consumption of PX in China.

The most rapid response to the explosion is the PTA market.

On the 8 day, PTA futures opened higher in the first half of the day, and the market ended sharply. The end of the market ended up sharply. As of the close of the day, the 1905 contract ended at 6576 yuan / ton, compared with the settlement price of the previous trading day, a sharp rise of 134 yuan / ton, or 2.08%.

In the past week, the planned maintenance of the PTA device is constantly rumored, the fluctuation of supply and demand structure, the PTA market is like a roller coaster, and how to repair and adjust the fault and other factors have become the node of PTA manufacturers' hype price.

It is understood that this year polyester factory procurement PTA contract reduction, spot purchase increased, this time stimulated by the explosion, increased the PTA manufacturers speculation price space, PTA spot market once again high.

Polyester filament paction hot, production and marketing burst watch!

Although the early PTA market has released good news, but due to the reality of the downturn in demand, the polyester filament market lacks driving power, and it is mostly stalemate.

With the explosion of news triggered PTA futures rose, plus Sino US negotiations to boost the good, the 8 day polyester filament Market partial pull up, and driven by rising sentiment, the market is hot, production and marketing once again burst.

By midday, the average production and sale of direct spinning polyester filament market has exceeded 250%, and some of the higher factories are already near 400%-500%.

The glycol finally pulls up, the polyester chip synchronously goes up!

Driven by the incident, ethylene glycol of polyester raw material has finally been pulled up. The 1906 main contract of the futures market has been operating at a high level after opening high, with a slight contraction after the afternoon trading, closing at 4857 yuan / ton, compared with the settlement price of the previous trading day, it Rose 17 yuan / ton, or 0.35%.

MEG internal market also has a slight upward trend, the spot quotation in the vicinity of 4840 yuan / ton, delivery price around 4830 yuan / ton.

In the PTA futures strong pull up, 8 days in Jiangsu and Zhejiang area semi optical chip market is also steadily rising, some manufacturers quoted price rise 50 yuan / ton, the mainstream quotation is concentrated in 7850-7900 yuan / ton (cash), negotiation is expected to be between 7800-7900 yuan / ton (cash).

International oil price refreshes the biggest increase in single season in nearly 10 years.

In the good market of Polly, we have to mention the crude oil market.

In the first quarter of the past, international oil prices have been the biggest increase in the last 10 years.

Since the bottom of the oil market in December last year, the favorable news of the market has prevailed. The positive factors such as the initiative of the OPEC countries to cut production, the passive sanctions and the reduction of production in Venezuela and other favorable factors have been highlighted. The international oil price has continued to rise in the first quarter of December.

According to data, the biggest increase in New York's oil price rose for 3 consecutive months, leading to a cumulative rise of more than 31% in the first quarter, the biggest increase in the single quarter since the two quarter of 2009, while the price of oil in Beihai, Brent rose 25% in the same period, which also set the biggest increase in the last 10 years.

The international oil price continued to rise last week, continuing the first quarter's upward trend.

Whether it is for market supply and demand, or for hype purposes, this wave of PTA market is indeed again strong return, PTA market is also willing to enter the inventory channel.

For polyester filament, under the help of upstream raw materials and downstream buying up mentality, it is not possible to further push up, and enhance the resilience in the short term.