In the market for feedstocks of polyesters in China, market sentiments are strong as supply/demand is expected to tighten. Derivative makers are expected to restart operations of their facilities while turnaround is scheduled to take place at production facilities of feedstocks.

In the market for purified terephthalic acid (PTA), a polyester feedstock, Hengli Petrochemical's two production facilities are scheduled to enter turnaround in March. For some facilities that are undergoing turnaround, including Yisheng Petrochemical's facility, the timing of restart has not been decided. Therefore, supply for PTA is seen to be tight for the time being.

In the market for ethylene glycol (MEG), many facilities are scheduled to enter turnaround, similar to PTA facilities. For this reason, perceptions of surplus supply are expected to recede.

On the other hand, in the market for derivatives, several polyester makers that procure those feedstocks are expected to restart their facilities along with completion of turnaround. As of now, the restart of some facilities after the Lunar New Year holiday is delayed. But in March onwards, demand for feedstocks is expected to increase.