The price spread between PTMEG and its major feedstock

The price spread between PTMEG and its major feedstock, BDO, has been near 7,000-9,000yuan/mt. The profit of PTMEG is limited after taken the processing fee into account. BDO-PTMEG industry has high integration. Companies enjoy strong profitability with high profit of BDO and profitable PTMEG. Some suppliers may prefer to ensure sales volume when it is profitable, while demand may be hard to have bullish support in short run. Suppliers are likely to have diversified views toward short-term price tendency.