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From a trading perspective, safety incidents rarely move prices unless they force plant shutdowns. But they do influence insurance premiums and labor costs for producers. More relevant for buyers is tracking operating rates—currently around 68%—which signal ample supply and limited pricing power despite upstream cost pressure.
One nuance often missed: the new Sinopec green technology cuts production costs by 70% and pollutant emissions by 90% versus older routes. That means new capacity isn't just larger—it's structurally cheaper. Older 50,000-ton units imported in the 1990s are now uncompetitive and will likely be retired, reshaping the cost curve significantly.