The futures for PTA in China dip during the first half of September 2025, primarily due to the weakness in feedstock crude oil prices. Chinese PTA export prices are facing renewed pressure, hitting a four-month low. PTA processing fees remained near this year's low, with factories operating at a loss. Terminal performance of the downstream polyester plants was lukewarm, falling short of expectations during the traditional peak season. Orders remained mediocre, and inventory levels suppressed fabric prices. While operating rates have declined to 76% and inventories have stabilized, the direction of prices in Q4 will largely depend on crude oil trends. Looking ahead, PTA margins are likely to stay supported during this maintenance phase and with the seasonal uptick in downstream demand leading up to October. However, we might see the PTA supply-demand balance weaken again in Q4 as both drivers reverse and stocks start to pile up.
Selenis has effectively manufactured recycled PET chips using terephthalic acid sourced from Circ®, a textile-to-textile recycler based in Virginia. The chip production took place through a series of batches at Selenis' pilot plant in San-Giorgio, Italy. By utilizing inputs recovered from polycotton textile waste, Selenis has created high-quality PET chip, which has been further processed into DTY yarn. This yarn will play a crucial role in product development as Circ prepares for additional capsule launches. Selenis is leveraging the success of this initial collaboration phase and is committed to advancing towards an offtake partnership to support Circ's inaugural industrial facility.
Eduardo Santos, Head of Corporate Strategy at Selenis, remarked that the monomer synthesis showed a performance comparable to virgin terephthalic acid. He expressed optimism about the consistent quality of Circ's monomer output and anticipated future commercial success. Santos pointed out that the Circ partnership complements Selenis's existing mission and goals for a more sustainable textile industry. He further stated their anticipation of expanding upon this collaboration and providing support for Circ's forthcoming commercial production trials.
