According to the monitoring of the business community, the domestic PTA market price has shown a V-shaped trend since December. As of December 26, the average market price was 5534 yuan/ton, down 0.35% from the beginning of the month.

At the beginning of this month, PTA prices remained weak under the multiple negative effects of crude oil downturn, PX and PTA new devices planned to be put into production in succession, and PTA accumulation pressure increased due to reduced terminal demand. On December 7, the epidemic control measures were optimized and adjusted, the load of terminal factories rebounded, and the demand improved periodically. At the same time, PTA devices were reduced in production, and the pace of PTA stock accumulation slowed down, and prices rebounded significantly.

In terms of PTA supply, the PX long term negotiation has not been finalized in the first ten days of December, and the PX price is firm. Due to the tight supply of raw materials in stages, PTA plants have reduced the production and load of devices, and the current industry starts at around 62%. In terms of new capacity, PTA plans to focus on production from November to December, but the overall production progress is slower than expected.

In December, the crude oil market was shrouded in a negative atmosphere, and the price continued to fall, reaching the lowest point at the end of the year. Subsequently, the oil market rebounded, mainly because the US dollar continued to fall and short-term supply tension worries overshadowed the pessimistic expectations of demand. As of December 23, the settlement price of the main contract of WTI crude oil futures in the United States was $79.56 per barrel, and the settlement price of the main contract of Brent crude oil futures was $83.92 per barrel.

With the adjustment of epidemic prevention policy and the rising price of raw materials, the confidence of downstream textile enterprises has been restored under a series of positive incentives, and they have started to purchase raw materials one after another. Some of the final orders were issued before the year, and the terminal factory postponed the centralized holiday. The market entered the periodic replenishment stage, and the quotations of mainstream polyester factories in Jiangsu and Zhejiang continued to rise, with the monthly increase of polyester filament varying from 3-6%. The starting load of looms rose to more than 50%, and some weaving enterprises postponed the original plan to stop in the middle of December until the end of December or early January.

Analysts from the business community believe that since the first ten days of December, driven by the favorable domestic policies, the recovery of terminal construction has led to the favorable drive of the entire industrial chain, and the PTA supply and demand pattern has been improved. At present, the terminal demand continues to fall seasonally in the late ten days after reaching the periodic peak, but PTA supply side is expected to decrease, and the cost side is still supported. Therefore, in general, PTA will still operate with strong vibration.