Ethylene glycol: short-term recovery in demand, shifting the market focus

Ethylene glycol: short-term recovery in demand, shifting the market focus

Recently, domestic epidemic prevention policies have been relaxed, and the macro-market sentiment has improved, stimulating downstream replenishment. The average price is 4040 yuan/ton, up 95 yuan/ton from last week.

During the week, international crude oil continued to fall, but it did not affect the sentiment of the ethylene glycol market. Due to the recent relaxation of epidemic prevention and control policies, market sentiment has warmed up, terminal orders have improved, factories have replenished goods in stages, polyester production and sales are in good condition, and polyester yarns are in good condition. Inventories have fallen markedly, but overall starts remain low. From the perspective of the supply side, due to the large amount of cargo arriving at the port last week, the inventory has accumulated significantly. As of Monday, the inventory at the main port of East China was 946,700 tons, an increase of 97,400 tons from the previous month. It is clear that in the long run, the oversupply situation is difficult to reverse, limiting the market's upward space.

On the whole, although the demand has improved, the increase in terminal orders at the end of the year is limited, there are still many uncertainties on the demand side, and there is a lack of continuous support. In the later stage, factories will gradually stop for holidays, and at the same time, the increase in supply will be clear. It is expected that in the short term, B It is difficult for the diol market to continue to rise, and there is a possibility of a callback.