Operation recommendations

The Zhuhai BP 1.25 million ton PTA plant was parked and overhauled for 3 weeks on the 30th; Jiaxing Petrochemical's 2.2 million ton PTA plant is scheduled to be parked for 15-20 days in early April; and Honggang Petrochemical's 1.5 million ton PTA plant is scheduled to be cleaned with alkali for 2 days starting April 2. The spring inspection arrived as scheduled, PTA equipment maintenance increased, the operating rate dropped to 75.71%, and spot supply was tightened. PTA's spot trading was fair yesterday, about 10,000 tons. Downstream polyester operating rate was 90.60%, and PTA inventory days fell to 2.5 days.

The price of PX stabilized, WTI crude was stable at $60, and PTA cost support was steady. The US ISM manufacturing index rebounded from a two-year low in March, boosted by strong employment and orders. The UK manufacturing index climbed to a 13-month high in March as factories increased inventories to prepare for Brexit. As the crisis in Venezuela deepened and Saudi Arabia increased its production cuts, OPEC oil production declined for the fourth month in a row, and Saudi production fell to its lowest level in four years in March. Manufacturing data from China and the US were stronger than expected to boost market sentiment, and WTI crude oil futures continued their biggest increase in ten years. Supply and demand are tightening, crude oil is strengthening. It is expected that PTA will continue its upward trend, and many orders can continue to be held.