PTA spot market trading was stable yesterday

Market Review
PTA spot market trading was stable today. The April CMP goods were mainly traded at a discount of 90-95yuan/mt on TA2005 or 200 on TA2009 and the non-CMP goods were traded at TA2005-100~130yuan/mt. The traded prices were pegged at 3,100-3,170yuan/mt. The May goods were traded at TA2009-190~195yuan/mt or TA2005-85yuan/mt. The prevailing trading basis was at TA2005-90yuan/mt. The deals were mainly among the traders and a few polyester plants also purchased on the market.

PTA futures market was range bound in the morning. The spot basis kept stable. The April CMP goods were offered at TA2005-85yuan/mt and the buyers bid CMP goods at TA2005-95yuan/mt. The discussion level kept at 3,140-3,160yuan/mt.　The warehouse receipts were offered at TA2005-18yuan/mt. The discussion level for warehouse receipts were at 3,210-3,230yuan/mt May goods were offered at TA2009-180yuan/mt and bid at TA2009-185~190yuan/mt.　One deal of May goods was traded at TA2009-190yuan/mt. PTA futures market slightly moved down in the afternoon. The April goods were discussed at a discount of 90~95yuan/mt on TA2005.

CFR China PTA market remained weak today. A few offers were at $400-410/mt CFR and the bids from polyester plants were at $380-390/mt. The talking level was at $400/mt.

In plant news, Yisheng Petrochemical has restarted its 2 million tons PTA plant after shut down for 3 days.

Downstream
PFY sales were mixed today, and the average sales ratio was assessed to 80% by P.M.3:00. The sales ratios of major plants were at 20%, 80%, 20%, 500%, 220%, 60%, 70%, 60%, 120%, 150%, 60%, 100%, 50%, 70%, 50%, 120%, 20%, 100%, 140%, 100%, 40%, 20%, 45%, 0%, 20%, 120%.　


Outlook
In the short term, the upstream market lacks momentum. In fundamentals, PTA processing spread is tolerable, boosting the PTA production. PTA plant operating rate increases to 90% around. But the polymerization rate recovery is slow, so PTA market may keep range bound after increase.　

$1=CNY7.09

Note:
1. CCFGroup Daily price calculation covers trades from 4 pm yesterday to 4 pm today.
2. Trades done with the term of "delivered" will subtract the delivery fee (about 30yuan/mt) to accord with ex-works price for daily average price calculation.
3. PFY sales ratio was based on new orders. Delivery volume may be bigger than sales volume as plants were delivering previous orders.