PTA Device Failure Has Become A Good Accident.

OPEC held a meeting in June 5th, decided to continue to maintain the original limit of 30 million barrels of crude oil daily unchanged.

Due to market expectations, international oil prices rebounded on the same day. At present, US crude oil futures price oscillates near $59 / barrel.

The price of its downstream petrochemical products is also relatively high. PX prices remain at a high level of around us $900 / ton, and the cost of PTA is over 5100 yuan / ton.

Therefore, the cost side temporarily supports PTA prices.

But in the long run, OPEC's decision to cut production has downward pressure on oil prices, and Asia's upstart devices restart PX.

There is also pressure.

In view of this, PTA costs have a downward trend.

Though this year

The company did not adopt a large-scale joint production reduction and insurance policy as it did last year, but the first half of the year has been constantly installed problems, which has become an important advantage in pushing up PTA prices.

In March 19th, the news of the restructuring of the Far East Petrochemical Company made the PTA price rebound. However, considering the high pressure and high output of PTA stock at that time, the price of PTA did not keep rising, and the rebound lasted for only 4 trading days. At the end of April 6th, it was Tenglong aromatics.

The impact of the explosion news, Xiang Lu petrochemical Zhangzhou 4 million 500 thousand tons of device parking, the 7 day PTA prices jumped, the closing price closed; in April 21st, the Yangzi Petrochemical Ethylene Glycol Unit exploded, its 1 million 350 thousand tons PTA device to stop, PTA injected new action.

This shows that since April, the main driving force of PTA has come from the installation problem.

At present, Far East Petrochemical 3 million 300 thousand tons, Xiang Lu Petrochemical 4 million 500 thousand ton PTA plant parking, plus long-term parking status of Peng Wei petrochemical, Ji'nan is Hao, Liaoyang petrochemical, etc., PTA operation rate was forced to maintain low.

As a result, after the issue of Yisheng Hainan PTA device came out, the price of PTA rose again.

In short, under the background of huge PTA production capacity, the problem of individual devices has limited impact on the PTA market. However, when the PTA operation rate has dropped to a low level, the supply and demand rate has further declined, and the supply has become tight and favorable factors have emerged.

However, the failure of the PTA device is only temporary. As long as the PTA processing deficit is maintained within the affordable range, the company will actively produce in order to compete for market share.

Therefore, the failure of the PTA device will turn bad with the restart of the problem device.