Ethylene oxide: pressure bearing demand on the cost side is difficult to slow down

Driven by the cost side, the price of ethylene has been in a volatile upward trend after the year. As of the press date, the price of ethylene hit a high point in recent two years. Under the pressure of high production cost, the unit also generally reduces the negative production. Under the expectation of tightening market supply, the on-site quotation is bullish.

After, the profit performance of ethylene oxide was not optimistic, and it was in a state of negative profit for a long time. As of the press date, the profit loss of ethylene oxide production exceeded 1000 yuan.

Ethylene oxide has been in a stable price state since. The price of raw ethylene has only increased but not decreased due to the price boost of upstream crude oil and naphtha. With the implementation of epidemic prevention and control measures, the transportation of goods in the region is limited, the terminal demand shrinks, and the factory procurement is more cautious. The demand continues to be weak under the epidemic situation. Due to the continuous pressure from the cost side, most of the units reduce the negative production, the boost to ethylene oxide is not strong, and the market is constantly worried about the demand.

In the future, the support of the cost side is relatively stable, but the market is dominated by the on-site supply and demand, and the epidemic prevention and control measures also have an important impact on the ethylene oxide short-term market. The downstream device has reduced the load, the demand side continues to be empty, the market situation is relatively difficult, and the market atmosphere remains weak.