Seeing from the upstream cost side, whether it is crude oil or PX-PTA industry chain

Seeing from the upstream cost side, whether it is crude oil or PX-PTA industry chain, the recent market supply and demand pattern and trading sentiment are relatively weak. Influenced by the global economic recession and inflation, and the continued momentum of aggressive interest rate hikes in Europe and the United States in Nov, the United States will release strategic reserves and international crude oil prices in the near future are easy to fall and difficult to rise. As for PX, although the spot supply is tight, the impact of new production capacity in the later stage gradually emerges and market prices are under pressure. Affected by typhoons and epidemics, the operating rate of PTA plants declines in the short term. The spot-futures basis strengthens, and processing fees expand. However, it is still dragged down by the polyester demand. In terms of MEG, with the gradually restart of the plants, MEG inventory accumulates in the fourth quarter and the support from fundamental gradually weakens, so it is expected that MEG may in weak consolidation in the short-term.