Sinopec Economics: Cost-driven and tight supply support, bottle chip fluctuating at high levels

This week’s polyester bottle chip prices showed an “N” shaped trend, with an average price of 8,670 yuan/ton in East China, up 0.99% month-on-month.
Early in the week, geopolitical tensions pushed up costs, leading to price increases;
midweek, negotiations and resistance to high prices caused a pullback;
on Thursday, driven by PTA major plant maintenance and a strengthening basis, prices rebounded.
Supply-side operations remained stable, with spot circulation relatively tight;
demand was limited to just essential small orders.
It is expected that next week’s prices will fluctuate strongly, with costs still being the main driver, supported by geopolitical factors and PTA maintenance.
Supply remains tight, but downstream acceptance of high prices is limited.
The expected trading range is 8,500–9,300 yuan/ton. (Zhuochuang Information)