In the polyester feedstock market in China, the paraxylene market remains firm and the purified terephthalic acid (PTA) market is also firm along with decreasing supply. On the other hand, for another major feedstock ethylene glycol (EG), while some facilities started turnaround, overall operation rates are high and many imported cargoes are arriving. This led to perceptions of ample supply.

Derivative polyester facilities are operating at high rates, although the low-demand winter season has started. Thus, supply/demand is not tight.

PTA facilities that underwent regular maintenance are gradually restarting and supply is increasing. Further, although some EG facilities are scheduled to undergo regular maintenance, inventories are high at 720,000mt at ports and imported cargoes are expected to arrive going forward. Under such circumstances, supply is expected to remain plentiful. Sentiment is forecast to be bearish for the time being in the derivative polyester market.