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Ethylene glycol: ethylene glycol under epidemic situation

Views: 0     Author: Site Editor     Publish Time: 2022-04-21      Origin: Site

Under the impact of the epidemic, the demand continues to be weak, the market sentiment is relatively pessimistic, the situation of high domestic supply continues, the recent market downturn, and the industry is more worried about the prospect of ethylene glycol, but the demand recovery brought by the improvement of the epidemic in the later stage can not be ignored.

Since the large-scale outbreak of the epidemic, sealing and control measures have been implemented in many regions in China, with limited logistics and transportation. Guangdong, Jiangsu, Zhejiang, Shandong and other major chemical industry provinces have strict control. It is difficult to deliver goods in Zhangjiagang reservoir area, and inventory has continued to accumulate. As of April 11, the inventory in the main port of East China was 1057200 tons, up 126200 tons from the beginning of March. High inventory has put pressure on the market and restrained the rising sentiment of the market, but in the long run, When the epidemic situation is effectively controlled in the later stage, the port delivery returns to normal and the inventory is expected to fall.

The control of logistics weakens the terminal consumption, and the start-up of weaving factories decreases in the peak season. At the end of March, the overall start-up of weaving factories is about 63%, while the start-up after Qingming falls to 46%. Under the condition of weak terminal, it is difficult for polyester factories to reverse the high inventory situation. At the same time, under the pressure of cost, many large polyester factories have implemented production reduction plans, and the overall start-up has decreased from 92% in the early stage to 85%, The production reduction at the demand side was transmitted to the ethylene glycol market, which significantly suppressed market confidence, and the market was pessimistic about the impact of the epidemic.

On the whole, there is uncertainty in the trend of international crude oil, and it has fluctuated widely in the near future. However, under the background of low valuation of ethylene glycol, the loss of oil production routes is difficult to change, and the deep decline of the market is unlikely. Although the burden of some domestic units is reduced, the high supply situation will continue in the short term, the downstream demand will continue to be weak, and the market lacks confidence. The uncertainty of the later epidemic also exacerbates the market concern. If the later epidemic can be effectively controlled, There will be centralized goods preparation in the downstream, and the market may pick up. When will the depressed market turn around? In the later stage, we will continue to pay attention to the changes of port inventory and downstream construction.

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