Cost Center Shifts Downward, PTA Prices Remain Weak

August 18th News

According to the commodity market analysis system, since August, the spot market trend of PTA in China has shown a downward trend. As of August 18, the average price of PTA in the East China region was 4,720 CNY/ton, a decrease of 2.09% from the beginning of the month.

On the PTA unit front, Taifook Chemical, Hainan Parking, Weilian, and Jiaxing have resumed operations, while units that were previously shut down or operating at reduced capacity are continuing their maintenance schedules—resulting in an overall recovery of supply. Meanwhile, Helen Petrochemical’s 3.2-million-ton unit successfully completed trial runs and began producing feedstock at the end of July, gradually ramping up its output. As a result, the industry’s overall operating rate remains steady at around 76%.

The peak season for traditional U.S. fuel consumption is coming to an end, but supply-side risks remain unresolved, keeping international oil prices set for predominantly weak and volatile trading in the short term. As of August 15, the September WTI crude oil futures contract settled at $62.80 per barrel, while the October Brent crude oil futures contract closed at $65.85 per barrel.

Downstream polyester demand recovery faces limited upside, while high inventory levels in the weaving sector continue to weigh on market sentiment, with no significant improvement from seasonal stockpiling. Polyester plants still hold cautious optimism for the traditional peak season, but without a broad-based rebound in demand, sustained restocking remains challenging. Overall, the market continues to adopt a wait-and-see approach, with rigid demand-driven procurement remaining the dominant strategy.

Analysts believe that with the commissioning of new PTA facilities, there is a slight increase in supply. Additionally, international oil prices are performing poorly, with the cost center continuously declining. Coupled with the overall weak trend of commodities, it is expected that PTA prices will continue to fluctuate and decline.