Intensive MEG units have turnaround or reduce production in Jun

MEG market is expected to destock in Jun. Intensive MEG units have turnaround or reduce production in Jun, and the run rate is low now. Imports of MEG are likely to reduce compared with May. Arrivals at major China ports are slanting low, near 150kt. Thus, destocking pattern is supposed to form in short run. The spot MEG market is likely to firm up theoretically.　 

Theoretically, feedstock market sees better industrial fundamental, and sales of polyester market improve. Under such circumstance, the increment of the whole polyester industrial should be bigger than current level. 

Sales of polyester products improved twice recently: one was near end-Mar, and the other　was after the Dragon Boat Festival (around Jun 10). 

Polyester feedstock market witnessed mixed increment and decrement. During the first round of improvement, overall polyester feedstock market declined (the excessive supply anticipation did not alter), while price moved up in the second round (supply and demand logic reversed), with limited increment. As for market outlook, the contradiction between new capacity and processing gap on PX market and the contradiction of high stocks of MEG did not change. Relatively speaking, controllable spot goods on PTA market is a bullish factor.