the downstream demand in the polyester industry chain is indeed recovering

Overall, the downstream demand in the polyester industry chain is indeed recovering, but the performance in overseas markets is not as good as expected and has not brought strong support to domestic sales. At the same time, manufacturers had strong expectations for recovery at the beginning of the year, but the reality is that demand and consumption are slow to catch up, and the market sentiment is difficult to change significantly in the short term after breaking expectations. Therefore, we believe that there are two estimates for the future market: first, the O/R of polyester factories will inevitably remain high, mainly due to considerations of mid-year financial report data and the insistence of some large factories on maintaining market share; second, if there are significant fluctuations in the future market, the main driver will still come from the raw material side, especially the game between new PX and PTA new capacity expansion and maintenance. It may still take some time for the downstream to recover, especially in terms of market confidence and the mindset of purchasers.