CICC Wealth Futures: PTA futures remain firm, following oil prices with high volatility

After the PTA futures market pulled back from its high level, it has still remained relatively firm. Leaving aside the conspiracy and confusion around Trump’s remarks, it is an indisputable fact that the Strait of Hormuz is under Iranian control; the tight supply of crude oil and naphtha is difficult to ease, and the issue with feedstock remains the most prominent contradiction in the PX-PTA link. Although terminal negative feedback suppresses short-term market overheating, there are many uncertainty factors on the periphery, which keeps cost support firm. Going forward, PTA will still track crude oil as it oscillates at high levels; in a news-sensitive market environment, both upside and downside risks need to be guarded against. (CICC Wealth Futures)