Sep 26, 2023
The continuous high prices of PX-naphtha spread this year are related to the weakness of naphtha and constantly high PTA O/R. Once either of these key supporting factors experiences an anomaly, PX prices will significantly decline, and PX-naphtha spread will follow suit. At the same time, why can PTA plants accept low processing spread and continue to operate at high rates? The reason is simple: several large PTA plants have integrated PX facilities, and PX-naphtha spread has generated significant profits. In this case, directly using PTA as a means to reduce PX-naphtha spread would be counterproductive. Additionally, low processing spread can facilitate industry reshuffling to some extent, which is actually beneficial for some major PTA plants. Therefore, in this sense, PTA's influence on PX is a natural outcome and not a misguided decision.