Capital Futures: Costs continue to decline, overseas supply is expected to recover, and PX futures prices continue to bottom out.

PX supply and demand remain weak, and destocking continues; however, after the US-Iran agreement, the market is trading expectations that the strait will reopen and overseas supply will return. Weak costs combined with improving expectations for overseas supply weigh on PX futures prices. It is expected that in the near term, PX futures prices will still be primarily driven by the cost side. Monitor the implementation of the US-Iran agreement, conditions for strait navigation, crude oil price trends, and changes in plants. (Capital Futures)
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