PX supply and demand could be balanced or supply could increase slightly in China in May-Jun

PX supply and demand could be balanced or supply could increase slightly in China in May-Jun. Regardless of the volatility in feedstock, PX price may keep strong as some PTA plants have restocking requirements, while PX inventory in some plants is low and there’s uncertainty in PX production from some plants. If more PTA plants are shut unexpectedly due to poor economics, PX market would be affected greatly, but any sharp PTA production cuts is unlikely as the industry is greatly concentrated, and upstream and downstream capacity is highly integrated