Home > News > Differentiation of energy varieties, methanol, PTA, thermal coal

Differentiation of energy varieties, methanol, PTA, thermal coal

2019-04-05
Inventories of methanol coastal ports continued to decrease by around 43,000 tons to around 945,000 tons. Although the reduction in coastal market stocks was in line with market expectations, the total inventory and decline were not satisfactory. At the same time, although the maintenance work of domestic methanol plants is on schedule, the market supply is not tight, and the supply pattern of the methanol market is still relatively loose in the short term. Considering that the methanol futures price increase lacks fundamental support factors, and further approaches the cost line of some producers, the methanol market is currently in a hollow and deadlock, and methanol futures prices are expected to be dominated by shock consolidation.
Recently, most production companies have mainly increased their exit and repatriation funds, and the spot price has also undergone a certain degree of adjustment. From the demand side, the orders of downstream processing enterprises have improved recently compared with last month. The stock willingness of some regional traders and processing enterprises has increased slightly, and market confidence has improved. In addition, the upcoming price coordination meeting in some regions will also boost market confidence. Overall, short-term glass prices will show strong momentum.
PTA futures prices have fallen sharply recently, mainly due to the continued sharp drop in PX prices. The market expects that the second line of Hengli will be put into production ahead of schedule, which is the direct link factor for the continued decline of PX. In addition, refining and chemical projects including Hengyi Brunei, Sinochem and Hainan are expected to be put into operation in the middle of this year, which also aggravated market panic. The superimposed centralized maintenance will be completed by then, and the oversupply is expected to rise sharply in the second half of the year. It is expected that PX prices will enter a new bottoming process that will inhibit PTA in the distant months. PTA spot prices remain high. Short-term processing costs are expected to remain high during the PTA warehouse phase.
The spot price of electricity coal ports began to fall. Although the overhaul of the Daqin line led to a decline in coal stocks in Qinhuangdao, coal stocks in the surrounding ports increased. The daily consumption of downstream coastal power plants decreased significantly, and the number of inventory days increased. The physical replenishment needs of power plants are still quite limited. In addition, despite the tight control of coal pipeline tickets in April, with the recovery of the port stock market, there is limited room for hot coal prices to continue to rise. Due to the high market price risk after the buyer's delivery in May, and the actual willingness to deliver is also very uncertain, the price is expected to be weak and volatile.

Home > News > Differentiation of energy varieties, methanol, PTA, thermal coal
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