As the core raw material in the polyester industry chain, the industrial landscape of PTA (purified terephthalic acid) directly influences the development trajectory of the chemical fiber sector. In recent years, China's PTA production capacity has expanded continuously. By the end of November 2025, total capacity had surpassed 94.7 million tons, doubling since 2019. However, the resulting structural supply-demand imbalance has plunged the industry into “internal competition.”

Policy Breakthrough: MIIT Symposium Launches New Chapter Against Involution

Sustained capacity expansion has plunged the industry into vicious competition. Since August 2025, PTA price spreads narrowed to under 200 RMB/ton, with October's average processing fee dropping to just 154 RMB/ton—a 15% month-on-month decline—marking four consecutive months within theoretical loss territory.

Against this backdrop, on October 29, the Department of Raw Materials Industry of the Ministry of Industry and Information Technology convened an industrial development symposium with the China Petroleum and Chemical Industry Federation, the China Chemical Fibers Association, and leading PTA enterprises. This marked a pivotal moment in the PTA industry's transition from “involutionary competition” to “high-quality development.” It is understood that the meeting explicitly required enterprises to submit core data on capacity, output, and profitability, along with proposals for measures to prevent industry involution.

Top 5 Enterprises Hold Concentrated Capacity, Laying Groundwork for Coordinated Production Cuts

China's PTA industry has developed a pronounced top-tier concentration effect, with the top five enterprises accounting for approximately 70% of the nation's total capacity. This concentration lays the foundation for industry self-regulation and structural optimization. According to CCF (Chemical Fiber Information Network) data, the top five enterprises by current capacity are Yisheng Petrochemical (a joint venture between Rongsheng Petrochemical and Hengyi Petrochemical), Hengli Petrochemical, Xin Fengming, Tongkun Group, and Dongfang Shenghong.

Latest industry data from late November indicates that China's leading enterprises have implemented anti-involution requirements through proactive shutdowns for maintenance and load control, signaling positive shifts in the industry's supply side. CCF data indicates that as of November 27, the national PTA operating rate hovered around 79.3%, a significant decline from the 83.7% recorded on October 30.

Yisheng Petrochemical directly reduced PTA output through extended shutdowns for maintenance. Statistics show approximately 60% of its PTA capacity is used for self-supply, while 40% is allocated for external sales.

A Transformation Inflection Point: From Scale Expansion to Quality Enhancement

The anti-involution movement in the PTA industry fundamentally represents an inevitable shift from scale-driven dividends to quality-driven dividends. Leading companies' proactive production cuts and capacity restructuring not only temporarily alleviate supply-demand imbalances but also set a benchmark for industry self-discipline.

As industry-wide consensus against internal competition solidifies, coupled with accelerated clearance of outdated capacity, the PTA sector is entering a critical phase of restructuring. Moving forward, leading enterprises with technological advantages and integrated supply chains will further consolidate their positions. The industry will gradually break free from the vicious cycle of “sacrificing profit for volume” and advance toward a new stage of high-quality development.

As an integrated internet platform providing benchmark prices, on December 9th, the benchmark price of PTA from SunSirs was 4687.75RMB/ton, an increase of 0.63% compared to the beginning of the month (4658.50 RMB/ton).

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