PX plants both in China and abroad would undergo maintenance in the fourth quarter

Therefore, though China PX inventory would pile up in Aug, but may decrease slightly in Sep and could increase only slightly in the fourth quarter, which could be supportive to PX-naphtha spread.

In a conclusion, the profits in polyester and its feedstock chain have been reallocating since July. Polyester sector was under losses earlier, but then the profits of PX and PTA were squeezed due to polyester plant operating rate cuts. Currently, with polyester profits recovering, feedstock PX and PTA are under pressure of losses. With PTA and PX plant maintenance in the future, the supply and demand situation is expected to improve and PTA and PX profits may recover. The recovery may be fueled if upstream crude oil prices drift lower, but it would be difficult for PTA and PX prices to rebound substantially.