Ethylene glycol: keep falling

This week, the domestic ethylene glycol market price declined in a wide range.

In terms of raw materials, the Biden government plans to carry out more market intervention to reduce fuel costs. The tightening policies of central banks may aggravate the risk of economic recession. Crude oil assets are sold in panic. During the week, crude oil in the United States fell sharply, and many products in the chemical market fell. Among them, ethylene glycol futures closed down by more than 4%. The weakening of the cost side has dragged down market sentiment, and the industry is pessimistic about the prospect of ethylene glycol.

In terms of supply and demand, despite a large number of domestic unit parking, port shipment was flat, inventory increased to around 1.21 million tons, the market was abundant in spot supply, but demand was still weak. Under the influence of poor orders and high temperature weather, the start-up of terminals was maintained at about 48%, which was difficult to recover significantly in the short term. Polyester start-up fell in a narrow range this week, and factory procurement was cautious under the influence of the sharp drop in raw materials.

On the whole, the pressure on the supply side of ethylene glycol is high, and the port inventory has not yet been significantly reduced. Despite the expectation of further decline in the domestic unit start-up, it is difficult to change the overall oversupply pattern. The market is abundant in spot goods, but the demand continues to be weak, and the terminal orders are poor, which has dragged down the market sentiment. It is expected that the ethylene glycol market may rebound with the rebound of the cost side in the later period, but the supply and demand is weak, It is still dominated by low shock.