Daily Review: Weak Cost Support Fails to Improve, Polyester Chip Market Extends Its Downward Trend

Market Overview: On June 16, 2026, the downward trend in the polyester chip market continued. In the Jiangsu-Zhejiang region, the negotiated transaction price for semi-dull chips hovered around RMB 7,020/ton, down 1.13% from the previous working day. The negotiated transaction price for bright chips was around RMB 7,120/ton, down 1.11% from the previous working day. Macro bearish factors continued to weigh on the market, with crude oil prices falling further and cost support weakening. Pessimistic sentiment dominated, and chip producers’ quotations continued to decline steadily. The focus of negotiated spot deals shifted lower, while downstream buyers showed limited willingness to enter the market, remaining mostly cautious and on the sidelines.

Supply aspect: The average operating rate of the polyester chip industry is around 79.12%.

Upstream market: International oil prices continued to weaken during the day, with the cost side exerting significant bearish pressure. The domestic PTA market in East China moved lower, with prices around 6,030 yuan/tonne. The ethylene glycol market also shifted downward, with spot prices in the East China market at around 4,445 yuan/tonne.

Market Forecast: The situation in the Middle East has shown significant signs of easing, but currently, global crude oil inventories are overall at a low level. Additionally, the restoration of shipping through the Strait of Hormuz and Middle Eastern oil supply will require a longer period. The physical tight balance will limit the downside potential of oil prices. Baichuan Yingfu expects that international oil prices will fluctuate around recent lows in the short term. With weak support from the cost side and downstream operations based on rigid demand, the market's bearish sentiment is unlikely to change. It is anticipated that the polyester chip market will adjust weakly tomorrow, with the price range for semi-dull chips in the Jiangsu and Zhejiang regions fluctuating between 6,950 to 7,200 yuan/ton, and the price range for bright chips fluctuating between 7,000 to 7,300 yuan/ton.