Shouchuang Futures: Continuing Inventory Accumulation, PTA Futures Price Fluctuates and Adjusts

In the spot market, today the PTA price in the East China market dropped by 85 yuan/ton, with negotiations at 5150 yuan/ton. The February main port delivery reported a discount of about 65 for the 05 contract, while the March main port delivery reported a discount of 35-55 for the 05 contract, with offers at a discount of 45-60 having been completed.
On the supply side, Yisheng New Materials has resumed 3.6 million tons in late February, and another line with a capacity of 3.6 million tons is planned to recover at 50% load soon; INEOS plans to resume its 1.25 million tons soon; Dushan Energy’s 2#250 million tons was shut down on February 10 and will restart on the 27th; Yizheng Chemical Fiber plans to conduct maintenance for three weeks in early March. Domestic PTA load has slightly decreased month-on-month, but with some maintenance units restarting, PTA load is expected to increase next week. It is estimated that PTA inventory will accumulate by 600,000 tons in February, higher than the same period last year. From the currently announced plans, there are not many new PTA maintenance plans for March. The PTA spot processing difference has slightly dropped to 367 yuan/ton.
In summary, PTA maintenance units are gradually resuming, and there are not many new maintenance plans for March. In the short term, PTA will maintain an accumulation state, with futures prices fluctuating at high levels, and there are expectations for improvement in supply and demand in the medium term. Future attention should be paid to the intensity of equipment maintenance and the recovery progress of downstream operations. (CICC Futures)