CITIC Futures: Oil prices dull PTA guidance, factories intensively cut production to realize results

The Middle East situation remains tense, with the Strait issue experiencing frequent uncertainties over the weekend. International oil prices are generally strong, but crude oil prices have dulled the guidance for PTA. From a fundamental perspective, both upstream and downstream of PTA are accelerating production cuts. As major PTA producers gradually implement reductions, downstream polyester filament factories are also actively cutting production to support prices, but short-term polyester reduction is relatively manageable. Under the weak supply and demand pattern, there is an expectation of significant destocking for PTA, with the basis gradually strengthening and liquidity tightening. Due to regional differences in inventory buffering capacity, PTA supply and demand are diverging regionally, and in the short term, prices are mainly following upstream cost fluctuations. (CITIC Futures)

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