Founder Futures: Costs Ease, PTA Futures Price Center of Gravity Moves Lower

Spot Market: East China PTA spot price is 6,750 RMB/ton for self-pickup, down 210 RMB/ton from the previous trading day.
On the supply side, Fujian Baihong’s 2.5 million-ton PTA plant’s load has decreased to 90% since the 16th, and Fuhai Chuang’s 4.5 million-ton capacity has dropped from 80% to 50%. Due to relatively stable PTA operation earlier and significant cost fluctuations, last week, PTA spot processing margins were briefly pushed into negative territory, leading some units to operate at reduced loads. However, with few PTA maintenance plans in March, it is expected that PTA will continue to build inventory in March.
On the demand side, polyester utilization has slightly rebounded, with slow recovery in Jiangsu and Zhejiang weaving operations. Polyester product prices are highly volatile; terminal gray fabric prices have risen accordingly, but mainstream gray fabric specifications remain in loss. Weak polyester production and sales have led to a rapid increase in polyester inventory, limiting the potential for increased production.
In summary, with few PTA maintenance plans, the industry continues to accumulate inventory. Terminal feedback has become more apparent, and in the short term, PTA futures are expected to fluctuate weakly. Attention should be paid to cost-side price trends, plant operation changes, and downstream recovery progress. (First Capital Futures)