Short-term ethylene glycol market expected to be muted

The market was weak yesterday, the general atmosphere of negotiation, the actual transaction stalemate, East China market closing prices in the vicinity of 3990-4000 yuan / ton.

Raw materials: Russia to fulfill its commitment to reduce production for the energy market to bring a boost, the federal government to provide security support for small banks deposits, foreign time March 21, Europe and the United States oil prices closed extended up. April WTI: 69.33 up 1.69 or 2.50%; May Brent: 75.32 up 1.53 or 2.07%.

Supply: device, Inner Mongolia, a 400,000 tons / year of syngas MEG plant recently ended catalyst cleaning, load to 8-9% near; the device in early February to reduce the negative maintenance. Coal-based units, including some in Xinjiang and Henan, are restarting, which will lead to an increase in domestic supply. The supply pattern is still in surplus, especially the possibility of the subsequent increase in imports will continue to put pressure on the plate, the U.S. South Asia plant will be opened at the end of March, the monthly import volume will be further increased to 560,000-580,000 tons / month range.

Demand: downstream polyester start almost reached 90% high, just demand for procurement is the main.

Forecast: On balance, domestic supply is elevated. The supply pattern is still surplus, the downstream just-demand procurement is mainly difficult to eliminate the supply increment, macro instability factors are more, the market sentiment is cautious, the short-term ethylene glycol market is expected to run on the light side.