Ethylene oxide analysis in April

In April, the quotation of ethylene market in Asia fell continuously, and the overall atmosphere of ethylene market in Northeast Asia was weak; The ethylene market in Southeast Asia is still relatively tight. Under the background of the shock and fall of crude oil and naphtha prices, the price support from the raw material end is not strong, and under the influence of the long-term insufficient terminal demand in the field, the demand for ethylene in Asia was weak during the month, and the market sentiment remained low. At the beginning of April, naphtha prices fluctuated greatly, ethylene prices in Asia were poor, and prices began to decline. Under the background of uncertain market prospect and loss of downstream derivatives, the current situation of demand is unlikely to improve in the short term. Buyers said there was no need to buy additional raw materials unless ethylene prices fell. In the middle of April, ethylene remained in a volatile downward trend. Against the background of sufficient supply and long-term weakness in the downstream market, the production profit of steam cracking unit was still under pressure, the operating rate remained at a low level temporarily, and the market spot supply was limited. However, under the condition of bearish downstream production demand, the ethylene supply in Asia was still large. Then, the recovery of naphtha market did not play much role in boosting the confidence of ethylene market. Under the background of continuous blockade of domestic epidemic, the short-term prospect is still pessimistic. Participants expect the average operating rate in Asia in May to remain between 80% and 90%.

The market focus of ethylene oxide was stable in April. Generally speaking, the price of ethylene oxide remained strong in April. Although the cost side support of ethylene oxide was weak, its production profit margin was still seriously damaged, and the operating rate was only low. Under the background of a large-scale recurrence of the epidemic, the market of related products Ethylene Glycol continues to shrink, the follow-up of terminal orders is poor, and the situation of short-term domestic oversupply will continue. Although the May Day holiday is coming, the enthusiasm for goods preparation before the holiday is not high, and the price of ethylene continues to decline within the month. However, the price holding and wait-and-see atmosphere in the venue is heavy, which has little impact on the overall ethylene oxide Market. The recovery of downstream terminals is slow, the follow-up of demand for ethylene oxide is limited, and the timeliness of logistics is also continuously affected by the epidemic. There is no good support for short-term fundamentals. If ethylene price drops again, the possibility of ethylene oxide price reduction after the festival will not be ruled out. It is expected that the domestic ethylene oxide market may be subject to strong shocks, and pay attention to the price trend of raw material end and the latest information guidance of manufacturers.