New pattern鈥擶ill Chinese PTA market revive in 2016
——Xu Ji'en, Deputy General Manager of Marketing Department, Yisheng Petrochemical

Mr. Xu introduced China's PTA market pattern in three respects. PTA supply side reform under new environment; PTA sales market amid new opportunities; PTA pattern evolution under new pattern 

1. PTA supply side reform under new environment. In recent years, domestic economic priorities turned into restructuring and transformation, financial system reform has become the focus of the work. In 2015, developing capital market, improving the proportion of direct financing and promoting RMB internationalization were the main tasks. 

2. PTA sales market amid new opportunities. In domestic market, effective PTA capacity is mostly running at full rate in 2016 and it is hard to increase further. As lines shut down before have not come back on stream and new ones have not started production, PTA is given a temporary respite in 2016 with periodical market boom, with processing margin ranging within 400-800yuan/mt. There are also changes in contract settlement modes in domestic market. In addition, we need to increase export while reduce import. PTA export of China totaled 623kt in 2015, up 160kt or 34.6% and import amounted to 752kt, down 412kt or 35.4% y-o-y. 

3. PTA pattern evolution under new pattern. Mr. Xu firstly gave us the definition of PTA bank and then told us why to develop PTA bank business. He also introduced four market trades of PTA Bank: carry trade, pricing trade, barter trade and forward cargos trade. Finally, he introduced service of PTA bank: transfer of ownership of cargos and warehouse receipt trade and delivery.