PTA Inconsistent Operation Alliance Exists In Name Only

"In fact, from the PTA futures 1409 contract squeezing failure finally Hengli Petrochemical delivery source can be seen, PTA three big price alliance has been difficult to maintain."

According to Wang Guangqian, as of September 15th, the total number of registered warehouse receipts in the PTA futures delivery warehouse was 12962, of which Hengli Petrochemical Company had 11660 warehouse receipts, accounting for nearly 90%.

"In addition, Hengli Petrochemical has been operating at around 80% in August, which is obviously higher than the agreed load in the price alliance agreement.

It can be seen that the unfavorable control of the supply of goods in the PTA spot market is the direct cause of the fall in the PTA spot price, and the decline in raw material prices is the fundamental reason for the PTA production to be profitable.

Wang Guangqian said.

Wang Guangqian said the price alliance agreement refers to the new price agreement reached by the PTA industry giant represented by Yisheng, Hengli and Xiang Lu at the end of May this year, that is, the load of three PTA devices can not be higher than 70% of their total capacity, and the new contract settlement price will be re priced according to the cost of raw materials PX plus 700 yuan / ton.

The "covenant" immediately triggered widespread controversy in the market, and the PTA production giant also used a concerted action to prove to the market the protection of the "covenant", but in only 3 months, such a so-called "alliance" was self destructive.

It is understood that the current whole

The role of the industrial chain has changed greatly, and the PTA price alliance action is no longer consistent.

Among them, Yisheng petrochemical and Xiang Lu Petrochemical Company's operation load control is relatively strict from 8 to September. The load control of Yisheng petrochemical and Xiang Lu petrochemical plant in September is less than 60%.

The operating rate has remained above 80%.

Meanwhile, September Yisheng and Xiang Lu PTA contract price is set at 6900 yuan / ton, Hengli Petrochemical contract price is set at 7000 yuan / ton, it is obvious that the three giants have not settled the contract goods according to the original cost pricing agreement.

"The three giants are different in their actions. The main reason is that cost loosening leads to production profits, and the nature of profit making does not care about the so-called alliance constraints."

Wang Guangqian said that along with the PX price following the price of crude oil all the way down, PTA dynamic production was profitable in the whole August, and some small and medium PTA factories maintained full load operation status, and production and marketing remained good.

In this way, the PTA factory controlled the start-up load and made a difference for others, so there were differences within the three giants.

In fact,

When the pattern is difficult to fundamentally change, PTA factory knows that if there is a long time production profit, there will be other PTA production enterprises to increase load to increase supply.

"The disadvantage of production load control within the alliance is sooner or later."

Wang Guangqian said.

The reporter understands, in May, when the whole industry was in extreme loss, shutting down production and maintenance is every PTA factory willing to do and must do, but as the production is profitable, the profit driven nature of manufacturers will be exposed.

In order not to lose the existing market share and substantial cash flow, the loosening within the alliance is also reasonable.