The rebound in crude oil, low PTA processing fees, and expected supply contraction have boosted the PTA market. According to the Commodity Market Analysis System of the Business Society, the domestic PTA market rebounded slightly on October 16th, with an average market price of 5871 yuan/ton in the East China region, an increase of 0.28% compared to the previous trading day.

The ongoing escalation of the Israeli-Palestinian conflict has led to increased concerns about potential supply risks and a significant increase in international oil prices. On October 13th, international crude oil futures rose significantly. The settlement price of the main contract for WTI crude oil futures in the United States was $87.69 per barrel, up $4.78 or 5.8%. The settlement price of the main contract for Brent crude oil futures was 90.89 yuan/barrel, an increase of 4.89 US dollars or 5.7%.

PTA factory has maintenance and load reduction phenomena. The current PTA industry is operating around 75%.

Entering mid October, the downstream polyester market demand gradually weakened. Recently, inventory has accumulated and production and sales have been average, resulting in poor demand for PTA in the short term. There is no expectation of significant increase in terminal orders, inventory digestion is insufficient, and the market atmosphere is cautious and wait-and-see. The current weaving start-up rate in Jiangsu and Zhejiang is around 65%, which will further decline due to this impact.

Analysts from Business Society believe that the high volatility of crude oil still provides support for PTA costs. PTA factory has a strong willingness to shut down for maintenance, and unplanned shutdowns will not be ruled out in the future. However, the downstream market has shown weak performance and limited support for PTA demand. It is expected that PTA prices will mainly undergo narrow fluctuations and adjustments in the near future.