handheldarcadegames| Malaysia's PX plant restarts Saudi Arabia is unstable: 550,000 tons of production capacity returns, Ineos Zhuhai PTA plant is temporarily suspended for 4 days

News summary

Changes in supply and demand in PX and PTA markets: Malaysia's 550,000-ton PX plant restartedhandheldarcadegames, Saudi Arabia accidentally stopped 1.34 million tons of PX. Zhuhai's 1.25 million-ton PTA unit was temporarily suspended and is expected to restart. PX prices fell slightlyhandheldarcadegamesPTA is affected by falling costs and tested the market mentality. Among the broad fluctuations in crude oil, PX and PTA have a high probability of weak fluctuations.

Newsletter text

[Malaysia's PX plant resumes operation, reducing market supply pressure]

Malaysia's 550,000-ton PX unit was restarted earlier this week and the facility was shut down on May 9 due to a failure. At the same time, Saudi Arabia's 1.34 million-ton PX unit also suffered accidental shutdown. It had previously operated unstable and operated at low load.

[Zhuhai PTA plant was temporarily suspended and is expected to be restarted over the weekend]

Ineos's 1.25 million-ton PTA unit in Zhuhai has been suspended for four days since May 20 and is expected to resume operations over the weekend.

[Crude oil prices rebounded slightly, and the market is looking forward to the OPEC+ meeting]

Despite concerns about falling demand in the crude oil market, crude oil prices rebounded at a low level within the day. The OPEC+ meeting in early June was closely watched by the market and is expected to provide certain support for oil prices.

[Supply and demand relationship adjusted, PX and PTA market conditions fluctuated]

Since May, supply pressure has eased due to frequent accidental parking of equipment. If frequent changes in downstream PTA units are reduced in the future, it will support the PX market. However, the suspension of the oil transfer market will only bring a temporary boost even if it recovers later. PX prices will continue to follow cost pricing logic.

[PTA market falls, market mentality is tested]

The continued weak adjustment of international crude oil futures has led to a weakening of PTA cost support. The overall downward adjustment in the domestic chemical market triggered a resonance among commodities, and PTA prices fell accordingly. News of production reduction in downstream polyester factories has been reflected in the market, and there is currently no new news of production reduction. The Ineos device is about to be restarted, and market supply will be under pressure.

[Trading strategy: PX and PTA markets are weak and volatile, with a wait-and-see attitude dominant]

On the previous trading day, the closing price of the TA contract showed a weak correction, and the PX correction was more obvious. Investors took a cautious attitude overnight as geopolitical premiums eased. It is expected that the PX and PTA markets will remain weak and volatile.