Oil prices fluctuate after the rally and coal prices remain firm

Oil prices fluctuate after the rally and coal prices remain firm. Meanwhile, total MEG inventory is hard to see obvious increase as supply recovers slower than expected. MEG prices could still find supports from the cost side and slow supply recovery.

In demand side, polyester polymerization rate is now around 87.3% and Sep average is estimated at around 88-89%. Currently, PFY product inventory remains high and restarts of units previously closed are still pending. It is hard to see clear increase in polyester polymerization rate before mid-September. Eyes could rest on sales of polyester products and end-user demand.