This weekly report is provided by Galaxy Futures on Monday morning, Beijing time. The data sources are INE, DCE, CZC, CME, ICE, and various news sources.

Please note:

1. Volume, Open Interest and turnover include buy and sell (double-side counted); 2. Volume and Open Interest are measured in lots;

3. Turnover (notional value) is measured in 10,000 yuan(RMB);

4. Price is daily/weekly last trading price.

PTA (Pure Terephthalic Acid)

Part A: Review (2019/1/7-2019/1/11)

From January 7, 2019 to January 11, 2019:the closing price of the main contract (TA905 contract) of PTA futures on Friday was 6020 yuan, 186 yuan higher than the closing price of the last trading day of last week. The highest price for this week is 6078 yuan, and the lowest point is 5808 yuan.

This week (2019/1/7-2019/1/11), the total volume of the main contract was 10,003,428 lots, an increase of 4,447,942 lots from last week. After the close of trading this Friday, the open interest of the main contract was 1,011,314 lots, an increase of 56,070 lots from the last trading day of last week.

Notes: The main contract refers to the futures contract with the maximum open interest.

Table:Volume, Open interest and Turnover of PTA futures

Graph: Close price of TA.CZC(in CNY，2018/3/26-2019/1/11)

Graph: Sum of All PTA Future contracts (2018/10/22-2019/1/11)

11,157,410 lots of China PTA futures were traded during 1/7/2019 to 1/11/2019, and the weekly turnover (notional value) was 331,224 million yuan (RMB), approximately $48.77 billion. The average daily trading volume for the current week was 2,231,482 lots/day.

Part B: Market Dynamics

1. Domestic PX production can not meet the demand of the downstream

Domestic PX production can not meet the demand of the downstream, some downstream PTA production enterprises are tight, can only rely on imported PX, resulting in PX external dependence increased year by year. From January to October 2018, PX accumulated imports of 13.018 million tons, an increase of 11.14%; PX cumulative exports of 129.4 tons, a year-on-year decrease of 99.6%.

From the perspective of PX import and export, South Korea, Japan, India and Taiwan are the main sources of imports, with South Korea accounting for 42%, Japan accounting for 15%, India accounting for 7%, and Taiwan accounting for 6%. The total proportion is 70%.

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