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.
