The report points out that in the first half of 2026, the lowest monthly naphtha import for China and South Korea fell by 39% and 26%, respectively, compared to the 2025 averages. Affected by tight feedstock supply, from January to July, China PX and PTA production volumes decreased by 2.3% and 3.3% year-on-year, respectively. Geopolitical conflicts, coupled with high oil prices and high volatility, suppressed market purchasing enthusiasm. Mr. Hao also cautioned that if the strait remains blocked, feedstock constraints will limit the increase in polyester operating rates, with the full-year 2026 polyester production growth rate expected to drop to -5% to -6%. Supported by low inventory levels and cost factors, PX/PTA are expected to maintain wide-range fluctuations.