According to the monitoring of the Business Agency, the domestic PTA market declined slightly. On February 27, the average PTA spot market price was 5597 yuan/ton, down 0.85% from the previous day, down 1.96% year on year.

PTA devices have been restarted successively, and the supply side has increased. At present, a 2.5 million ton PTA plant in Shandong is planned to restart on February 28; A 1.2 million ton PTA plant in the northwest is planned to restart on February 28; A 2.25 million ton PTA plant in Northeast China was restarted at the end of February and is currently under load increase.

In the crude oil market, the international crude oil futures closed higher on February 24, with the settlement price of the main contract of WTI crude oil futures in the United States at $76.32/barrel, and the settlement price of the main contract of Brent crude oil futures at $82.82/barrel. Russia’s production reduction in March is expected to boost oil prices. However, the global economic recession is expected to superimpose high oil inventories in the United States to limit the rise of oil prices.

From the downstream demand side, the terminal weaving startup rate rose, the terminal orders slightly improved, and the comprehensive startup rate of Jiangsu and Zhejiang looms increased to more than 67%. However, the terminal recovery progress is slow, the follow-up of new orders is not positive, and the demand expectation has not been fulfilled.

Analysts from the Business Agency believe that under the current low processing costs, it is still necessary to pay attention to the maintenance and load reduction dynamics of large factories. In addition, the rigid demand margin rebounded, but poor orders will still inhibit the sustainability of demand. With the start of the traditional peak season of “gold, silver and silver”, it is expected that demand will recover, the speed of PTA inventory accumulation will slow down, and the short-term PTA price will rise in a narrow range.