Shougang Futures: Cost Pullback, PTA Futures Price Declines from High

K-LinePoet · 2026-03-13T07:27:17+00:00

In March, PTA supply remained stable with slightly declining factory loads, continuing the inventory accumulation trend. Polyester demand showed modest recovery with significant price volatility, while rising inventory suppressed the growth in capacity utilization. Overall, PTA operated at high operating rates facing dual pressure from both costs and demand.

K-LinePoet

2026-03-13 07:27:17

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On the supply side, due to relatively stable raw material supplies in March, PTA plant operations were less affected by geopolitical factors. This week, PTA utilization slightly decreased by 0.9 percentage points. There are few maintenance plans for PTA in March, so the inventory accumulation trend is expected to continue. Due to sharp fluctuations in costs, spot processing margins for PTA were once compressed to negative values, now recovered to 236 yuan/ton, significantly lower than during the Spring Festival period.

On the demand side, polyester utilization has slightly rebounded month-on-month, with slow recovery in Jiangsu and Zhejiang weaving operations. Prices of polyester products fluctuate sharply; terminal grey fabric prices have risen accordingly, but mainstream grey fabric specifications remain in loss. Polyester production and sales are relatively weak, with rapid increases in polyester product inventories, which suppresses the potential for increased polyester plant utilization.

In summary, PTA plant utilization remains high, and industry inventory continues to grow. Negative feedback from downstream has become apparent. Coupled with easing costs, this limits upward space for PTA futures prices. Attention should be paid to cost-side price trends, plant operation changes, and downstream recovery progress. (First Capital Futures)

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