Introduction: This week, prices along the industrial chain declined, driven mainly by geopolitical factors. The early signing of a memorandum of understanding between the US and Iran raised expectations for the unblocking of the Strait, causing crude oil premiums to retreat and hurting costs. Profits in the industrial chain remain concentrated at the raw material end. Supply-demand dynamics continued to see destocking. Basis weakened slightly but later firmed as visible inventory destocking accelerated.

Key Points:

1. Domestic PTA weekly production this period: 1,281.2 thousand tons, +32.4 thousand tons vs last week.
2. Domestic PTA weekly capacity utilization rate this period: 66.69%, +1.70% vs last week.
3. Polyester industry average weekly operating rate this period: 77.69%, -0.38% vs last week.
4. PTA social inventory this week: approximately 3,203.7 thousand tons, -56.5 thousand tons vs last week.
5. PTA processing fee average this week: 664.23 yuan/ton, +62.41 yuan/ton vs last week.

Table of Contents:
I: US-Iran MOU Signed, PTA Prices Fall Sharply
II: Cost Side Concessions, PTA Processing Fees Recover
III: Supply Increases, Demand Decreases, Balance Sheet Destocking Narrows
IV: Social Inventory Continues to Destock, Strong Distant Expectations Boost Confidence