Ethylene oxide: weakening cost support and poor demand. How to deduce the ethylene oxide Market

Since the large-scale counterattack of the domestic epidemic, the production and transportation in the region have been limited, and the terminal infrastructure industry has almost stagnated due to the impact of public health events. The bottom-up constraints from the demand side make it difficult for the ethylene oxide Market to develop well in the short term. At present, the industry is more cautious and wait-and-see attitude, and there is no obvious hoarding during the festival. It is difficult to say that it has a demand boosting effect.

Ethylene prices in Asia have fluctuated lower since their historical high in early April, but they are still high. The crude oil price fluctuates widely, the cost side support is significantly weakened, and the downstream demand for raw ethylene continues to be weak. The unit operating rate is expected to remain at 80% - 90% in May. Although the profit loss of production enterprises has rebounded slightly, the cost of ethylene oxide is still under pressure, and reducing negative production and reducing price has become the norm.

While the price of raw ethylene fell, the profit margin of ethylene oxide began to return to the breakeven point.

The price of ethylene oxide has been stable since mid February. In the context of the continuous volatility of the crude oil situation, the price of raw ethylene has gradually declined recently, but the pressure on ethylene oxide production has not eased significantly, and the market prospect is not clear. The operating rate of devices in the chain is mostly maintained at a low level, the domestic epidemic is severe, the regional logistics and transportation are limited, coupled with the slow resumption of work in the downstream terminal infrastructure industry, the rapid repair and replenishment of supply and demand is difficult, the willingness of downstream monomer manufacturers to destock is obvious, the market is still tepid, and most of them focus on profit making shipments.

In the future, there is no good news to support the short-term ethylene oxide Market. The wait-and-see mentality of the industry is relatively strong, and the price is still stable. The direction of the cost side is unclear, the terminal demand dominates the balance of supply and demand in the venue, and the epidemic prevention control affects the market sentiment. The quotation of raw ethylene is weak. If it continues to decline in the future, the possibility of ethylene oxide reduction will not be ruled out. Pay attention to the development of domestic epidemic and the balance between supply and demand in the field.