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Ethylene glycol: the demand is frustrated and the market is in a stalemate

Views: 0     Author: Site Editor     Publish Time: 2022-05-20      Origin: Site

Recently, the epidemic prevention and control in Jiangyin is strict. As a large chemical fiber City, Jiangyin has an overall production capacity of more than 6 million tons and thousands of textile mills. Therefore, the impact of Jiangyin's sealing and control on the chemical fiber industry should not be underestimated, and the transmission to ethylene glycol has exacerbated the concerns of market participants.

In recent days, the market price in East China has been fluctuating between 4800-4900 yuan / ton. Due to the sharp decline in the closing price of crude oil on May 10, the opening price of ethylene glycol futures fell the next day, and the market center of gravity moved down, but the bottom rebounded and the market shock rebounded. At present, the profit loss of ethylene glycol industry is serious, the price decline is limited, and the weak situation of supply and demand also limits the rebound space, and the market is in a dilemma.

From the supply side, the recent operation of domestic units is relatively stable, but there are still maintenance plans for several units in the later stage. Shenhua Yulin 400000 T / a ethylene glycol unit is planned to be overhauled for about one month in mid and late May, Inner Mongolia Yigao 120000 T / a unit is planned to be overhauled for 10-15 days in mid May, and yuandonglian and sanning have maintenance plans in June, so the domestic supply pressure will be reduced. However, on the other hand, the port inventory remains high and there is no obvious trend of destocking. As of May 9, the inventory of the main port in East China is 1.1532 million tons, and the high inventory still suppresses the rising sentiment of the market.

On the downstream side, with the arrival of the off-season demand, the domestic trade orders of the terminal are already poor. At the same time, the epidemic broke out in Jiangyin, and the sealing and control measures were strictly implemented. Some chemical fiber textile enterprises were forced to stop production, while the normal operation enterprises were also subject to traffic control. It is difficult to deliver goods in the short term in Jiangyin. Recently, the spinning factories in Shandong, Hebei, Jiangsu and other places have begun to have tight raw materials, the receiving mood at the demand side is not high, and the transaction in the ethylene glycol market is in a stalemate, Traders have difficulty in shipping.

On the whole, the high inventory has not been significantly reduced. Although some units are shut down for maintenance in the later stage, the domestic capacity base is large, and the pressure on the supply side is difficult to eliminate in the short term. At the same time, the downstream demand is limited and the market rebound is weak. It is expected to maintain low consolidation in the near future, and continue to pay attention to the changes of port inventory and downstream demand in the later stage.

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