**I. Driving Logic**
Industry chain relationship: Raw materials (PTA) → Intermediate products (polyester) → Downstream products (polyester filaments), with price and demand transmission occurring mutually.
(1) **Industry prosperity hits bottom** The PTA industry has experienced rapid expansion over the past five years, with annual compound capacity growth of 11%. Rapid supply-side releases have gradually squeezed industry profitability. Currently, the industry's average operating rate has declined to 78%, with major manufacturers showing clear demands for profit improvement.
(2) **High industry concentration enables potential coordinated production cuts** Six companies - Yisheng, Hengli, Tongkun, Xinfengming, Shenghong, and Sanfangxiang - control 74% of capacity concentration. Industry associations are discussing coordinated production cut formats.
(3) **PTA-filament sector poised to enter dual prosperity cycle** No new PTA capacity additions are planned going forward, while new filament capacity in 2026 will also be limited, creating simultaneous supply inflection points.
**II. PTA Overview**
PTA (Purified Terephthalic Acid) serves as a key monomer raw material for the global polyester industry, with China accounting for over 60% of global capacity.
(1) **Production process**: Using paraxylene (PX) as raw material, crude terephthalic acid (CTA) is obtained through oxidation, then refined to produce PTA.
(2) **Applications**: Highly concentrated in polyester production (over 95%), with small amounts used in pharmaceutical intermediates, coating/ink additives, etc.
**III. PET Overview**
PET (Polyethylene Terephthalate, or polyester) represents the world's largest synthetic fiber variety by production volume, with China accounting for over 55% of global capacity.
(1) **Production process**: Generated through polycondensation reactions between PTA (Purified Terephthalic Acid) and EG (Ethylene Glycol).
(2) **Applications**: Three major sectors - textiles, packaging, and engineering plastics. - **Textiles**: Converted into polyester fibers (polyester), including filaments and staple fibers; filaments used in garment fabrics, home textiles (sheets, curtains), and industrial yarns (tire cord, safety belts). - **Packaging**: Processed into PET films (for food packaging, electronic protective films) and PET bottle flakes (for beverage bottles). - **Engineering plastics**: Manufactured into modified PET for automotive components (bumpers, dashboards) and electronic appliance housings.
**IV. Top Five PTA Industry Capacity Leaders**
**Yisheng Petrochemical**: Joint venture between Rongsheng Petrochemical and Hengli Petrochemical, with PTA capacity of 22 million tons (global leader).
**Hengli Petrochemical**: PTA capacity of 16.6 million tons (global second), PTA filament capacity of 8 million tons.
**Tongkun Corporation**: PTA capacity of 10.2 million tons, PTA filament capacity of 13.5 million tons (global leader).
**Xinfengming**: PTA capacity of 7.7 million tons (3 million tons of new capacity coming online soon), PTA filament capacity of 8.4 million tons.