Report Summary 1. Investment Rating No investment rating information is provided in the report. 2. Core Views - The polyester market is in a weak and volatile state in the short - term due to the off - season of demand. Multiple plant maintenance delays have led to an expected increase in supply in July. It is recommended to short PXN on rallies. - For PTA, it is advisable to conduct basis positive spreads, reverse calendar spreads, and the unilateral trend is weakly volatile. Take profit on the long PX and short PTA strategy. - For MEG, conduct basis and calendar positive spreads, and avoid shorting based on valuation. Consider going long on dips for the unilateral position. [3][4] 3. Summary by Directory 3.1 PX - **Valuation and Profit** - The unilateral trend of PX is weak, and the calendar spreads are also weakening. The PXN has fallen from a high level, and the gasoline cracking spread has declined, leading to weaker aromatics blending demand. Aromatic prices show a differentiated trend, with toluene and pure benzene prices weak, while PX prices are strong, and disproportionation profits have recovered. [20][26][43] - **Supply and Demand, Inventory** - The operating rate of PX has slightly decreased. In June, the domestic production of PX rebounded to 319 tons, and the operating rate this week was 81% (-2.8%). The import volume in May rebounded to 77.3 tons. The monthly inventory in June decreased to 435 tons (-16). [55][64][83] 3.2 PTA - **Valuation and Profit** - The basis of PTA has dropped significantly as spot traders have exited basis trades. The 9 - 1 calendar spread continues to focus on reverse spreads, and the number of warehouse receipts has decreased to a low level. The cost has risen, the profit of PX has declined, and the profit of PTA has remained at a low level. [95][97][102] - **Supply and Demand, Inventory** - The operating rate of PTA has remained stable. In June, the production volume was 629 tons, a month - on - month increase of 6.4%. The export volume in May decreased significantly to 27 tons, and it is expected to rebound in June - July. The social inventory last week was 215 (-5) tons, and the de - stocking slope has slowed down. [107][113][129] 3.3 MEG - **Valuation and Profit** - The unilateral valuation of MEG is in a volatile state, and the calendar spreads have declined. The profits of each production link have weakened month - on - month, and the MTO and ethylene - imported ethylene glycol production are suffering severe losses. [140][148] - **Supply and Demand, Inventory** - The operating rate of MEG has decreased month - on - month. The operating rate in July is expected to remain in the 66 - 70% range. The import volume in May was 60 tons, and it is expected to rebound in June. The inventory is at a low level. [156][160][167] 3.4 Polyester - **Valuation and Profit** - No specific valuation and profit information is provided in the report. - **Supply and Demand, Inventory** - The operating rate of polyester is 90.2% (-0.6%). The production volume has increased by 8% year - on - year. The inventory pressure of polyester filament has increased significantly. [171][177][179] 3.5 Terminal: Weaving, Clothing No specific information is provided in the report.

Report Industry Investment Rating - PX/PTA/PF/PR are short - term bullish. Short - term, the polyester industry chain is expected to remain strong, but beware of the risk of chasing high prices. For cross - period, a positive spread strategy is recommended, and there is no strategy for cross - variety [6][7] Report's Core View - On May 14, all commodities in the polyester industry chain rose. The main reasons were the good macro - sentiment, the better - than - expected results of the Sino - US talks, the reduction of tariffs being beneficial to the demand side of polyester, the rebound and stabilization of crude oil prices, and the de - stocking of polyester raw materials [2] - In terms of cost, the Sino - US talks brought macro - benefits, the crude oil price rose, and downstream energy - chemical products rebounded. The gasoline cracking spread may improve seasonally, but its upward space is limited. The aromatics blending demand is not worth much expectation [3] - For PX, PXN has rebounded from a low level. In the short term, the market sentiment has improved and unexpected maintenance has increased. In May, domestic PX maintenance devices will restart, and supply is expected to increase. For TA, the basis has strengthened due to de - stocking in May [4] - In terms of demand, the polyester operating rate has increased. After the festival, the operating rates of downstream weaving and texturing have rebounded rapidly. After the reduction of tariffs, textile and clothing orders are expected to improve, and the inventory pressure of filament has decreased. The production reduction of polyester may be postponed [5] Summary According to Relevant Catalogs Price and Basis - The report shows the TA main contract, basis, and inter - period spread trends; PX main contract trend, basis, and inter - period spread; PTA East China spot basis; and short - fiber 1.56D*38mm semi - bright natural white basis [11][12][14] Upstream Profit and Spread - It includes PX processing fee PXN, PTA spot processing fee, South Korean xylene isomerization profit, and South Korean STDP selective disproportionation profit [19][22] International Spread and Import - Export Profit - The report presents the toluene US - Asia spread, toluene South Korea FOB - Japan naphtha CFR, and PTA export profit [27][29] Upstream PX and PTA Startup - It shows the operating rates of PTA in China, South Korea, and Taiwan, as well as the operating rates of PX in China and Asia [30][33][35] Social Inventory and Warehouse Receipts - It includes PTA weekly social inventory, PX monthly social inventory, PTA total warehouse receipts + forecast volume, PTA warehouse warehouse receipt inventory, PX warehouse receipt inventory, and PF warehouse receipt inventory [39][42][43] Downstream Polyester Load - It presents filament sales, short - fiber sales, polyester load, direct - spun filament load, polyester staple fiber load, polyester bottle - chip load, filament factory inventory days, and the operating rates of weaving, texturing, and dyeing in Jiangsu and Zhejiang [50][52][62] PF Detailed Data - It includes polyester staple fiber load, polyester staple fiber factory equity inventory days, 1.4D physical inventory, 1.4D equity inventory, recycled cotton - type staple fiber load, raw - recycled spread, pure polyester yarn operating rate, pure polyester yarn production profit, polyester - cotton yarn operating rate, polyester - cotton yarn processing fee, and the available inventory days in pure polyester yarn and polyester - cotton yarn factories [76][84][86] PR Fundamental Detailed Data - It shows polyester bottle - chip load, bottle - chip factory bottle - chip inventory days, bottle - chip spot processing fee, bottle - chip export processing fee, bottle - chip export profit, the price difference between East China water bottle - chips and recycled 3A - grade white bottle - chips, bottle - chip next - month spread, and bottle - chip next - next - month spread [92][94][99]