1. In mid-April, the escalation of the U.S.-China trade war drove PTA prices to new lows. On April 2, the U.S. imposed 34% “reciprocal tariffs” on China, raising the cumulative tariff rate to 54%. Crude oil prices plummeted over $17, hitting a yearly low. As China launched countermeasures, the tariff war disrupted demand. Following the Qingming Festival, PTA opened sharply lower, plunging to 4,016 yuan/ton—its lowest level in nearly four years.

2. Significant progress in Sino-US negotiations in May drove a notable rebound in PTA prices. On May 12, China and the US issued the Joint Statement of the Economic and Trade Talks in Geneva. The US canceled 91% of the tariffs imposed in April and suspended the 24% “reciprocal tariffs” for 90 days. China correspondingly canceled 91% of its countermeasures tariffs and suspended the 24% countermeasures tariffs for 90 days. PTA rebounded by over 600 points starting in May, returning to pre-tariff-war price levels.

3. The Israel-Iran conflict drove PTA to surge sharply before retreating. On June 13, Israel struck Iranian nuclear facilities, prompting Iran's retaliation and triggering the conflict. Market concerns escalated over potential disruptions to Iranian oil and gas infrastructure and Middle East logistics, causing crude oil costs to surge significantly and driving PTA prices higher. On June 24, after 13 days of conflict, both sides accepted a ceasefire proposal, triggering a sharp PTA correction.

4. September marked the “darkest hour” with collective declines in chemical products. By late August, overall chemical supply faced relative oversupply. With short-term capacity adjustments difficult and seasonal demand falling short of expectations, the market suppressed valuations to alleviate supply pressure. Chemical products like PTA faced short positions, with prices continuing to fall through late October.

5. October Symposium on Preventing and Resolving Involutionary Competition in PTA and Bottle Chip Industries. To prevent and resolve involutionary competition within the purified terephthalic acid (PTA) and bottle-grade polyester chip sectors and promote stable industrial operations, the Department of Raw Materials Industry of the Ministry of Industry and Information Technology issued the “Notice on Convening a Symposium on the Development of the Purified Terephthalic Acid PTA and Bottle-Grade Polyester Chip Industries” on October 27. Amid persistently low processing fees, voluntary production cuts in the PTA sector intensified, improving near-term supply-demand dynamics and lifting the price floor.

6. December PTA outlook improves, market momentum begins. As the year-end approaches, the market enters the 2026 annual outlook phase. With slowing PX and PTA production expansions, expectations of “anti-involution” emerge, pointing to a tighter annual supply-demand balance. Compared to other chemical products, PTA and PX initiated significant position increases and rebounds on December 19.

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