China PTA supply and demand

As for PX, the impact was quite opposite. If Hangbang’s 2.2 million mt/yr PTA plant remains shut in Jun and Jul, PX inventory would further rise, bringing more pressure on PX market which has already been under immerse strains from record high inventory and acute shortage of storage space.

Based on Hangbang’s 2.2 million mt/yr PTA plant remaining shut in Jun and Jul

However, after the restart of Hangbang’s plant, PX inventory would grow more slowly, with supply and demand expected to be balanced in Jun, inventory increase of less than 100kt in Jul.

PX producers are now under great pressures from low PX-naphtha and PX-MX spreads, however, production cuts haven’t started yet. There are several reasons behind it.