PTA Spot Market Daily (Oct 27, 2010)

PTA Spot
·Traded price of offshore spot goods: $1045-1047/mt (Korea origin)
·Traded price of offshore spot goods: $1060-1065/mt (Taiwan origin)
·Traded price of spot goods in RMB market: 8480-8500yuan/mt by cash, on deck
·CCF PTA offer-take index: 2.0

Review
PTA futures fell sharply, but the spot market remained stable, although the market prices have weakened, but the business turnover intention is not cheap, some products inquiry is still relatively hot. Early, PTA futures fell quickly, but then low-rise, PTA spot price of 8550 yuan/mt, a small amount of product is slightly lower, 8,500 yuan/mt. 8,450 yuan/mt buyer inquiries, or a bit more. The number of inquiries more than yesterday. Price of less than 5 yuan/mt, sellers unwilling to sell. One spot order trade in 8530 yuan/mt. Afternoon down by the impact of PTA futures, spot market prices fall, but the 8450 yuan/mt buyer inquiries is still more, Negotiate prices Concentrated in the 8480-8500 yuan/mt.

In the morning, The number of Taiwan-origin cargoes were less, It’s offered at $1070/mt and done at $1060/mt. Today Han producing spot quotations in $1050-1055/mt, the buyer delivery tray $1045/mt, or was a bit.

Downstream
PFY sales ratio in Jiangsu and Zhejiang mostly held at 150% level, with some lower at 60-70%. It will continue the trend of rising.

Outlook

Futures initiative to call back, but still buying stock, not significantly slowed in the downstream case, the possibility of larger market continued high consolidation.