Saudi crude oil prices rise; Polyester chips prices rise!
Dec 07, 2021
1. The Central Bank: Lowering the deposit reserve ratio of financial institutions
In order to support the development of the real economy and promote a steady decline in comprehensive financing costs, the People's Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points on December 15, 2021 (excluding financial institutions that have implemented a 5% deposit reserve ratio ). After this reduction, the weighted average deposit reserve ratio of financial institutions is 8.4%, and this time the RRR cut has released a total of about 1.2 trillion yuan in long-term funds.
2. Saudi Arabia raised the official price of some crude oil
Saudi Aramco raised the January price of oil sales to Asia and the United States, and raised the January price of Arab light oil to Asia to a premium of US$3.30 per barrel.
Market summary
Crude oil situation:
WTI January crude oil futures closed up 4.87% to US$69.49/barrel; Brent’s February crude oil futures closed up 4.58% to US$73.08/barrel.
Production and sales yesterday:
The PTA period is now on the strong side, and some polyester chip factories have taken the opportunity to ship, and low-priced sources still exist. As of 16:00 yesterday, the factory's mainstream production and sales were 108.95%, an increase of 53.50% from the previous working day. The specific production and sales data are as follows: 100%, 120%, 100%, 0%, 20%, 80%, 200%, 80%, 0%.
Macro overview:
The PTA operating rate continued to decrease, and futures warehouse receipts continued to flow in, but the speed margin was slowing down. The physical inventory of goods in the last cycle increased by nearly 15,700 tons. The polyester operating rate was stable during the week, and the polyester filament factory plans to increase the scale of production reduction, or further drag down the polyester operating rate. Looking at the trend, PTA is in a downward channel. From a structural point of view, PTA futures are near-low and far-high, and the forward processing fee is significantly better than that of the near-end.
Port inventory continued to accumulate and market sentiment was not good. Yesterday, East China spot closed down to 4788 yuan/ton. The polyester end load continues to decline, and the demand end performance is not good. However, the overall domestic supply increase and decrease, the international crude oil rebounds strongly, and the short-term domestic ethylene glycol market is expected to rebound weakly. The East China spot price negotiation range is expected to be 4700-5000 yuan/ Ton.
Today's factory quotation
In the morning, the center of gravity of MEG's internal trading rose slightly, and the market was a little stalemate; today's prices have stabilized and moved slightly.
At present, the polyester chip market in East China is negotiating for semi-gloss chips at 6000-6100 yuan/ton, and for bright chips at 6,150-6400 yuan/ton. Affected by the rise in crude oil and the closure of some domestic reservoirs, the cost of polyester is rising strongly, but The downstream of ester chips has poor bullish sentiment, only some low-priced sources have narrowed, and the focus of market transactions has been adjusted within a narrow range.
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