Shouchuang Futures: Geopolitical tensions still carry uncertainties, and PX futures prices remain volatile at high levels.

In the spot market, on March 27 the CFR China PX price was $1,263 per ton, up $27 per ton from the previous trading day. At 30 in the morning, in the Asia PX market, June cargoes were offered at $1,265 per ton.

In terms of costs, there are still major disagreements between the U.S. and Iran. The U.S. has proposed a ceasefire for one month and put forward a 15-point plan to end the Iran conflict, which was rejected. The geopolitical situation remains tense, and international crude oil prices are fluctuating at high levels.

On the supply side, this week both Asian and domestic PX operating rates have declined. With shipping routes continuing to be locked and crude oil supply disrupted, there is no exclusion of additional downside room for PX operating rates later on. As oil prices and naphtha prices adjust, the production economics of both PX long-chain and short-chain processes have widened slightly.

On the demand side, PTA operating rates increased month over month, but negative feedback at the end-market has emerged, and polyester and weaving-and-knitting operating rates have fallen somewhat.

Overall, given that the geopolitical situation remains tense, in the short term PX futures prices are expected to mainly follow crude oil and fluctuate at high levels. Keep an eye on developments in the geopolitical situation, the crude oil price trend, and changes in upstream and downstream units. (Founder Futures)