The hottest PTA supplier reduced MEG production an

2022-08-08
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PTA suppliers cut the production of MEG, and polyester was forced to stop production.

with the ineffective performance of PTA's August contract, the opening price of the August contract of 920 US dollars is obviously not the settlement price, and the average spot price of 900 US dollars/ton will become the benchmark of the August settlement price, while the PX August contract settlement price of 1145 US dollars is converted into the cost. PTA suppliers' August production losses are also a foregone conclusion, not to mention that a considerable number of PTA suppliers' August contract sales are not smooth, A large number of contract goods will also find buyers in September, and whether the PTA contract in September can be performed above $880 is still a problem. The loss of PTA suppliers may be more than 10 million. However, domestic suppliers are unable to buy in polyester factories because of lack of funds, and the domestic contract settlement price is also sold at 8500 yuan, which is higher than the spot price. Obviously, polyester customers will not buy it. A large number of domestic PTA are stored in PTA supplier warehouses, and some have no place to stack, and some are looking for warehouses to solve urgent problems. Under such a bleak situation, the production enthusiasm of PTA suppliers continues to be suppressed, It is inevitable for suppliers to reduce production. At present, some domestic PTA manufacturers with the greatest inventory pressure have planned to arrange parking and overhaul in August to reduce the pressure on inventory and revenue. The PTA unit with a capacity of 270000 tons/year of PetroChina Liaoyang Petrochemical has been overhauled recently, and the restart time is to be determined. Ningbo Yisheng Petrochemical will stop its No. 1 PTA unit (with a capacity of 660000 tons/year) for maintenance in early September for about 10 days. A person from Yangzi Petrochemical said on the 28th that the company plans to shut down and overhaul three PTA units in September, and the overhaul of each unit will take at least three weeks. The source said: "we have not decided on the exact parking date, but we are likely to start the overhaul of smaller devices in the first few days of September, and then overhaul larger devices." Yangzi Petrochemical operates two 350000 T/a PTA units, and the third unit is 600000 T/A. Since Yangzi Petrochemical is one of the largest PTA producers in China, whether the size is stable or not, market participants estimate that its parking will bring some vitality to the depressed market. For example, Sanxin Petrochemical has also reduced its load by 30%. In the future, depending on the sales situation, it is possible to stop two sets of PTA units for maintenance. The load reduction operation of Xiamen Xianglu Petrochemical has lasted for a period of time, and the future shutdown and maintenance may not be ruled out

the current maintenance situation of foreign PTA devices is still limited, and most of them are small devices with high production costs, including the 200000 t/a unit of Samsung Petrochemical Company in Ulsan, South Korea, which has been shut down since June

a major Taiwanese manufacturer also closed two production lines with small capacity for the same reason. Another major Taiwanese manufacturer shut down one of its two units for maintenance this week for a month. Mitsui chemical's 205000 ton/year unit 1 in Iwate has been shut down since June. Due to poor profits, the device will continue to shut down for some time. The manufacturer originally planned to repair the device for up to a month in June

however, as the digestion of domestic inventory has yet to take time, the supply and demand situation of the spot PTA market cannot be changed in the short term, and the market is still depressed. Affected by the PTA supplier's production reduction news, the upstream PX market was even more frightened. On Monday, PX spot fell again to around $1050 CFR, and the PX October contract price also seemed to be not optimistic. As market participants believe that PTA cost platform will continue to move down inertia in the next few months, even the current spot price of USD and the spot price of 7900 yuan/ton may not be at the bottom of the market. In addition, the downstream polyester production and sales are likely to be sluggish for a long time, and the price reduction and promotion of polyester will be strengthened. PTA market will continue to be in the embarrassing situation of no cost support at the top and no demand coordination at the bottom, and the situation of small rise and large return is difficult to change, Therefore, the bearish atmosphere in PTA market can never be reversed. On Monday, the PTA transaction level in the inner market was still around yuan/ton, the quotation in the outer market was in USD/ton CFR China (l/c90 days), and the negotiation level was in USD/ton CFR

on the whole, the downstream trend still determines the general trend of polyester raw materials. At present, the production and sales of polyester are hovering at a high level. Although the actual transaction price of the factory has declined slightly, the sales situation has not been improved, and the inventory level continues to rise. The inventory of most factory products has been nearly 20 days, and we have felt the inventory pressure of the Ye yes yaw series pressure experiment machine. Some factories said that if the production and sales continue to be depressed, the price will continue to decline, Tentative small load reduction will be considered. Due to the financial pressure and limited profit space, most dealers are bearish in the aftermarket and basically have no interest in purchasing. They mainly focus on warehouse reduction and stock out. The downstream textile mills continue to adhere to the small order operation mode of purchasing on demand due to heavy inventory and financial pressure. Although the decline in PTA prices has reduced the raw material costs of polyester factories, the sharp rise in MEG is quite terrible for the rise in costs. At present, polyester is short, chip production is at a loss, and some factories with high price reduction in filament production are on the verge of loss. Due to the prominent cost pressure, in the face of losses, some factories have prepared or have reduced production to cope with market changes. Once the polyester plant is forced by MEG, the main engine, oil source and control system 1 In the process of moving, the pendulum should be unloaded and maintained mainly: the production will be greatly reduced. I'm afraid that the production reduction of PTA suppliers can't save the tragic fate of PTA

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