The sustained weakness follows the sharp correction seen after the United States-Iran ceasefire eased concerns over supply disruptions in the Middle East. Crude oil prices have remained under pressure as markets continue to price out the geopolitical risk premium that had driven petrochemical feedstock prices higher earlier this quarter.
Chinese feedstock markets also remained soft. CFR China PTA prices held steady at $*** per tonne on June ** after dropping from $*** per tonne, on June **. During the week, PTA declined to $*** per tonne on June **, $*** per tonne, on June ** and $*** per tonne, on June ** before stabilising. MEG prices eased further to $*** per tonne, on June ** from $*** per tonne, a day earlier, extending the week**;s decline from $*** per tonne, on June **. The sequential correction reflects continued weakness in upstream energy markets and cautious downstream buying.
Market participants said polyester producers are benefiting from lower feedstock costs, although downstream demand remains moderate. Textile manufacturers are largely purchasing according to immediate requirements amid uncertainty over export demand and the direction of crude oil prices.
