PTA operating rate is hard to climb up

From the prospective of feedstock, PX supply is tight, and PTA operating rate is hard to climb up. Some plants still have plan to cut production in Sep. PTA market may focus on de-stocking further in Sep. In terms of demand, yarn inventory in spinning mills remains high currently, but with the lower temperature and coming traditional peak season, demand is expected to improve. However, PSF supply may continue to rise in Sep. On one hand, some plants that have cut production or suspended operation due to power rationing will recover. On the other hand, Xinfengming may release its new product gradually in Sep. Therefore, despite of large rally of futures, PSF plants continue to focus on selling and reduce inventory. After this round of sales, PSF plants face lower inventory pressure further, and in short, the market may maintain firm. Pay attention to the downstream market later.