The China domestic market for feedstocks of polyester is bearish in general. As crude prices going forward are uncertain, prices for feedstock paraxylene (PX) and purified terephthalic acid (PTA) are not supported.

In the PX market, operation rates of some production facilities increased and production in the country is at a high level. Supply is seen to be ample. But as Honggang Petrochemical's 2.40mil mt/year new PTA facility started up in June, demand for PX as a feedstock of PTA increased as well.

As operation rates of PTA facilities increased, there are more spot cargoes for sale. On the other hand, buying interest from derivative makers is scarce and PTA prices lack upward momentum.

In the market for monoethylene glycol (MEG), which is also a feedstock of polyester besides PTA, volumes of imported cargoes arriving in the country are high while demand from derivative makers was sluggish. Therefore, consumption of inventories is slow.

In the derivative market, operation rates of polyester makers are high. But since demand is weak, production might be reduced going forward.