According to the price monitoring of business agency, the domestic PTA market rose sharply on March 2. The average market price in East China was 5995 yuan / ton, up 4.68% from the previous day and 32.15% year-on-year. PTA main contract rose by the limit, and PTA futures main 2205 closed at 5988, up 6.02%.

WTI crude oil set a new high since June 2014, PTA followed the rise of crude oil, and the cost support was strong. It is difficult for Russia and Ukraine to reach a satisfactory result in the negotiations, the war in Ukraine is difficult to calm down in the short term, and the market expectation of future energy supply interruption is further strengthened. A multinational agreement to release strategic crude oil reserves also failed to curb the rise in oil prices. On March 1, the settlement price of the main contract of WTI crude oil futures in the United States was US $103.41/barrel, up US $7.69 or 8.0%; The settlement price of the main contract of Brent crude oil futures was US $104.97/barrel, up US $7.00 or 7.1%.

From the perspective of supply and demand, under the low processing cost, the maintenance of domestic factories increased. Among them, the 350000 ton PTA unit of Yizheng Chemical fiber was overhauled for about 20 days on March 1. At present, the operating rate of PTA industry is around 78%, and the expectation of destocking helps PTA prices rise. Most of the downstream polyester market rose, and the quotation of mainstream factories in Jiangsu and Zhejiang increased by 50-100 yuan / ton.

Business analysts believe that the pattern of strong crude oil remains unchanged in the short term, PTA’s own factory devices are overhauled one after another, the supply side is expected to shrink further, and the weaving start of superimposed terminals will gradually recover. Therefore, PTA fundamentals are expected to be better, and the price will remain upward.