On balance the short-term ethylene glycol market is expected to oscillate

The market yesterday was strong on the upside, the general atmosphere of negotiation, the actual transaction is still possible, as of 3:00 pm East China market closing price in 4190-4200 yuan / ton near. The market is still in the middle of a recession and the outlook for continued austerity continues to drag down demand expectations, with oil prices in Europe and the US falling more than 2% on April 20. May WTI: 77.29 down 1.87 or 2.36%; June Brent: 81.10 down 2.02 or 2.43%.

Supply: Petrochemical overhaul led to cautious quotations from merchants, with the South China market covering the plate to sell and quotations chasing higher but with limited buying interest. On the device side, some domestic glycol restart units were delayed. In the US, an MEG plant of 830,000 tonnes/year was stopped for maintenance near April 15 due to equipment abnormality, and the impact is expected to last around 3 weeks.

Demand: The downstream polyester demand side support is not strong, considering the current terminal weaving factory stockpile level is very low, in the May Day before the festival there is still a need to just replenish the stockpile, the time point for a large area to reduce the load is still to come.

Forecast: On the whole, it is expected that the short-term ethylene glycol market is expected to be oscillating.