In China, run rates of polyester factories are dropping ahead of the Lunar New Year holidays, which dampens buying interest in feedstocks. In this situation, some of feedstock purified terephthalic acid (PTA) makers are adjusting operations. Meanwhile, with crude oil prices hovering high, the PTA market would unlikely plummet.

Regarding ethylene glycol (EG), costs remain high along with the recent firm feedstock ethylene market. For EG, low storage levels at ports are also a bullish factor. But while import volumes are expected to grow going forward, buying interest from polyester markers is receding. Thus, many market players forecast only a small rise in EG prices.