Incident review: According to China News Service, Taipei, April 7 – An explosion occurred at Taihua Aromatic Hydrocarbons No. 3 Plant in Mailiao 6 Light Industrial Zone, Yunlin County, Taiwan at about 14:00 on the 7th. The fire department It was determined that the liquefied petroleum gas (LPG) pipeline was caused by the rupture of the ethyl butane removal tower. The fire was brought under control at about 16:00, and no casualties were found yet.
Liuqing, the full name of “Sixth Light Oil Cracking Plant”, is located in the island-style basic industrial zone in Mailiao District, Yunlin County. It is invested, developed and operated by Formosa Plastics Group. It is the sixth light oil cracking plant in Taiwan and the first private refinery in Taiwan.
Formosa Plastics exploded, involving 870,000 tons of PX production capacity, causing a major shock in the PTA market, and the polyester industry chain became “hot”!
PTA futures jumped short and opened higher, once reaching the daily limit, and closed up 2.08%!
An explosion occurred at Formosa Plastics Yunlin Mailiao Liuqing Formosa Aromatic Hydrocarbons Plant No. 3, involving a PX production capacity of 870,000 tons, accounting for approximately 4% of my country’s apparent PX consumption. %. The PTA market responded most quickly to the explosion! On the 8th, PTA futures opened with a gap and opened higher. It once reached the upper limit during the session and closed sharply higher. As of the close of the day, the main 1905 contract closed at 6576 yuan/ton, which was a significant increase compared with the settlement price on the previous trading day. 134 yuan/ton, an increase of 2.08%.
In the past week, there have been constant rumors about the planned overhaul of the PTA device , under the fluctuation of supply and demand structure, the PTA market fluctuates like a “roller coaster”; factors such as maintenance and adjustment, faults, etc. have become nodes for PTA manufacturers to speculate on prices. It is understood that this year, polyester manufacturers have fewer contracts to purchase PTA and more spot purchases. This time, stimulated by the explosion, there is more room for PTA manufacturers to speculate on prices, and the PTA spot market has surged again.
Polyester filament sales are booming, and production and sales are exploding!
Although the PTA market has released good news in the early stage, due to the reality of sluggish demand, the polyester filament market lacks upward momentum and mostly operates in a stalemate. As the news of the explosion triggered a surge in PTA futures, coupled with the positive boost from Sino-US negotiations, the polyester filament market partially rose on the 8th. Driven by rising buying sentiment, market transactions were booming, and production and sales once again exploded. As of midday, the average production and sales of the direct-spun polyester filament market has exceeded 250%, and some high-end factories have been around 400%-500%. It is expected that the production and sales of the polyester market will continue to increase in the afternoon, and the transaction volume is still rising.
Ethylene glycol finally rose, and polyester chips rose simultaneously!
Spurred by this incident, polyester raw material ethylene glycol was finally able to rise. The main 1906 contract on the futures market opened higher and then ran at a high level, with gains after midday. There was a slight contraction, closing at 4,857 yuan/ton, an increase of 17 yuan/ton, or 0.35%, compared with the settlement price on the previous trading day. MEG’s internal market prices also rose slightly, with spot quotations around 4,840 yuan/ton and bid prices around 4,830 yuan/ton.
Strong rise in PTA futures Next, on the 8th, the semi-glossy slice market in Jiangsu and Zhejiang also rose steadily. Some manufacturers’ quotations increased by 50 yuan/ton. The mainstream quotations were concentrated at 7850-7900 yuan/ton (cash), and the negotiation is expected to be 7800-7900 yuan/ton (cash). between.
International oil prices hit the biggest single-quarter increase in the past 10 years!
In this wave of good news, one thing that has to be mentioned is the crude oil market. In the first quarter that just passed, international oil prices set a new record for the largest single-quarter increase in the past 10 years. Since the crude oil trend bottomed out in December last year, positive factors in market news have prevailed. Positive factors such as OPEC countries’ active production cuts and passive sanctions and production cuts by Iran and Venezuela have been highlighted. International oil prices continued to rise in the first quarter.
According to data, oil prices in the New York market, which has seen the largest increase, have risen for three consecutive months, driving a cumulative increase of more than 31% in the first quarter, setting a new record for a single quarter since the second quarter of 2009.Big gains; British North Sea Brent oil prices rose 25% over the same period, also recording the largest single-quarter increase in the past 10 years. Boosted by the favorable supply and demand situation, international oil prices continued to rise last week, continuing the surge in the first quarter.
Whether it is due to market supply and demand issues or for hype purposes, this wave of PTA market has indeed returned strongly again, and the PTA market has also entered the destocking channel as expected. For polyester filament, with the boost of upstream raw materials and the help of downstream buying mentality, it is not ruled out that there may be further push up, and the resistance to falling will be enhanced in the short term. </p
