PX Price and Profit both Dented After Mid-Autumn Festival
On the first day after the Mid-Autumn Festival, the CFR China PX price closed at $819/mt, down $19/mt compared with that before the festival.
In recent times, the bearish atmosphere still dominates the Asian PX market. From a cost perspective, due to concerns about the ongoing economic recession, international crude oil prices have fluctuated at low levels, which has limited cost drivers for PX. From the perspective of supply and demand fundamentals, domestic PX factories are maintaining high-load operations, and there is an expectation of an increase in import volume. However, due to the impact of typhoon weather, some PTA factories have experienced unplanned production cuts and unit shutdowns, leading to an escalation of supply and demand contradictions.
Therefore, under the dual pressure of cost and supply and demand, PX prices have shown particularly weak performance, while cash flow profit has transferred to the polyester product end. The price spread between PX and Brent has been compressed to $277.67/mt, a decrease of up to 34.59% from the level at the beginning of August.
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