According to the price monitoring of business agency, the domestic PTA market fell significantly in August. As of August 31, the average spot price was 4926 yuan / ton, down 11.11% from the beginning of the month and up 37.62% year-on-year. The futures market also weakened. On August 31, the settlement price of 2201, the main PTA futures, was 4968 yuan / ton, down more than 10% in a single month.

In terms of PTA supply, with the restart of some PTA units in mid and late August, the supply pressure has increased, and the current operating rate is more than 80%. Superimposed on the decline in demand, PTA ended destocking and began to accumulate inventory again in late August. Near the end of August, PTA’s main suppliers announced that the contract supply in September was 80%, and the suppliers reduced the supply for the sixth consecutive month.

OPEC + began to increase production. In August, the crude oil price once fell to a three-month low, the crude oil price weakened, and the PTA cost side price support weakened. The production and sales of downstream polyester factories were poor and the inventory increased. Large factories jointly reduced production, and the operating load decreased by less than 83%, down by about 5% compared with the beginning of the month. In terms of price, the polyester factory has promoted for many times, and the downstream procurement has a large volume. However, due to the weak new weaving orders, poor finished product delivery, continuous high inventory, weak orders and the impact of the epidemic on logistics, the downstream just needs procurement, and the demand for PTA is weakened.

Business analysts believe that at present, PTA cost side price support is insufficient, the follow-up of new orders at the terminal is slow, and the downstream polyester factories may increase production reduction due to poor production and sales, PTA demand will continue to be weak, and inventory may increase. In addition, PTA’s new production capacity has reached production capacity one after another, and the pressure on fundamental supply and demand has increased. It is expected that the PTA market will maintain a volatile downward trend in September.