Shouchuang Futures: Maintenance adds overlapping costs leading to rising prices, PTA futures strongly rebound

Spot market, East China PTA price is 6,680 yuan/ton self-pickup, up 100 yuan/ton from the previous trading day. This week and next week, main port delivery is around a 05 discount of 10, with deals at a 20-30 discount. On the supply side, as processing margins continue to compress, PTA maintenance plans have increased recently. Yisheng New Materials’ 7.2 million-ton and Baihong’s 2.5 million-ton units are reducing their loads; INEOS plans to conduct maintenance on 1.1 million tons in mid-April; Hengli’s two units totaling 5 million tons are scheduled for maintenance on April 10. In April, PTA units will gradually be affected by force majeure on raw material supplies. On the demand side, negative feedback from end-users is emerging, weaving operations are declining, and polyester filament factories plan to further cut production, suppressing PTA demand. Overall, despite weak demand, PTA maintenance plans are increasing, combined with escalating geopolitical conflicts, and crude oil prices remain firm with strong cost support. It is expected that short-term PTA futures will experience valuation correction, with attention to crude oil price trends and plant operation changes. (First Capital Futures)