As a core raw material in the polyester industrial chain, PTA (Purified Terephthalic Acid) plays a pivotal role in shaping the development trajectory of the chemical fiber sector. In recent years, China's PTA production capacity has continued to expand, surpassing 94.7 million tons by the end of November 2025—a doubling since 2019. However, this rapid growth has led to structural supply-demand imbalances, plunging the industry into intense "involution-style competition."

**20% Production Cut! Two High-Level Meetings Unite Against "Involution"** The persistent capacity expansion has triggered a vicious cycle of competition. Since August 2025, the PTA price spread narrowed to below RMB 200 per ton, with October's average processing fee dropping to just RMB 154 per ton—a 15% month-on-month decline—marking four consecutive months of theoretical losses.

Against this backdrop, on October 29, the Ministry of Industry and Information Technology (MIIT), alongside the China Petroleum and Chemical Industry Federation and the Chemical Fiber Association, convened a development symposium with leading PTA producers. This meeting signaled a critical shift from "involution-style competition" to "high-quality development." Participants were required to submit core data on capacity, output, and profitability, as well as proposals to counter industry involution.

**Top 5 Firms Hold 70% Market Share, Laying Groundwork for Coordinated Cuts** China's PTA sector exhibits significant market concentration, with the top five producers accounting for approximately 70% of total capacity—a foundation for self-regulation and structural optimization. According to CCF (China Chemical Fiber Network), the leading players are: 1. **Yisheng Petrochemical** (a joint venture of Rongsheng Petrochemical and Hengyi Petrochemical): 21.5 million tons (23% of national capacity). 2. **Hengli Petrochemical**: 16.6 million tons. 3. **Xinfengming Group**: 11 million tons. 4. **Tongkun Group**: 10.2 million tons. 5. **Eastern Shenghong**: 6.5 million tons.

**Leading Firms Take Action: 8.45 Million Tons Idled** The success of anti-involution measures hinges on corporate execution. By late November, top producers had begun implementing voluntary shutdowns and load adjustments, driving positive supply-side changes. CCF data shows the national PTA operating rate dropped to 79.3% as of November 27, down from 83.7% on October 30.

**Yisheng Petrochemical**, the industry leader, took the most aggressive steps, idling 8.45 million tons of capacity across its Ningbo, Dalian, and Hainan plants. Its operating rate plunged to 61.4%, single-handedly pulling down the sector average.

Meanwhile, **Hengli Petrochemical** and **Tongkun Group** maintained normal operations, while **Xinfengming** balanced new capacity launches with the shutdown of an older 2.5-million-ton facility. **Eastern Shenghong** temporarily halted one of its three units for maintenance.

**From Scale to Quality: A Sector at a Crossroads** The anti-involution campaign reflects the industry's inevitable transition from scale-driven growth to quality-driven efficiency. Proactive production cuts and capacity optimization by market leaders not only alleviate short-term supply-demand tensions but also set a benchmark for self-discipline. As consensus against involution solidifies and outdated capacity exits accelerate, the PTA industry is entering a pivotal phase of restructuring.

Moving forward, companies with technological advantages and integrated supply chains will further consolidate their positions, steering the sector away from price wars and toward sustainable, high-quality growth.