market participants are very concerned about any production cuts due to the poor economics

Therefore, market participants are very concerned about any production cuts due to the poor economics. However, as of the time of this writing, the plant operating rates have been maintaining at regular level and the operating rates of some products even show an uptrend. Though PTA plant operating rate has dropped since end-Jan in China, it is still at relative medium and slight high level given the current economic situation. As for PX and polyester, the operating rates even tick up lately, in contrast to some’s expectation. Some participants may see it quite confusing why producers are not cutting production given the poor economics