Geopolitical risks dominate, PTA continues to weaken.

Introduction: Prices across the industrial chain declined this period, under pressure from both cost and demand sides. US-Iran negotiations shifted from escalation to détente. With the US dropping strikes against Iran, talks are gradually entering the final stage, leading to a decline in crude oil prices from elevated levels. PTA plants scheduled maintenance, and Asia-US aromatics blending provided a brief boost. However, support from polyester and textile sectors remained weak, and social inventories are yet to be fully absorbed.

Key Points:

1. Domestic PTA weekly production this period: 1,189,500 tons, down 1,700 tons from last week.
2. Domestic PTA weekly capacity utilization rate this period: 62.02%, down 0.20 percentage points from last week.
3. Polyester industry average weekly operating rate this period: 81.10%, unchanged from last week.
4. PTA social inventory this week: approximately 3.7927 million tons, down 189,800 tons month-on-month.
5. PTA processing margin this week: average 337.48 yuan/ton, down 64.92 yuan/ton from last week.

| Table of Contents: I. US-Iran Negotiations Remain Volatile; PTA Continues Weak II. Supply-Demand Both Decline; PTA Gives Back Some Processing Margin III. Planned Maintenance Units Fulfill Turnarounds; Balance Sheet Continues to Destock IV. Social Inventory Awaits Digestion; Geopolitical Tensions Cool Down, Diluting Costs |