Crude oil rebounded last week after Washington rejected the latest Iranian offer for a truce. Polyester intermediates followed and lifted the polyester chain to multi-year highs in September. Producers could not pass on the full cost increase and cut their operating rates to historically low levels. Textile mills refuse to buy at these price levels, even in the peak season.

Crude oil fell last week as tensions eased in the Middle East. This has not yet brought relief to polyester producers in China. PTA and MEG remain in short supply, so production costs stay high. Downstream buyers refuse to pay more, and fiber prices have stopped rising. Producers are left with negative margins and respond by cutting output.
This report provides a comprehensive overview of the entire polyester value chain, from crude oil to polyester fibers, covering naphtha, mixed xylenes, paraxylene (PX), purified terephthalic acid (PTA), monoethylene glycol (MEG), polyester chips, polyester staple fiber (PSF), and polyester filament yarns.