Short-term ethylene glycol market expected to be narrowly oscillating

The futures market moved slightly upwards yesterday. As of 3:00 pm the East China market price was around RMB4088-4098/ton.

Raw materials: U.S. banking crisis worsening concerns continue to spread, the European Central Bank as expected to raise interest rates by 25 basis points and the United Arab Emirates from May to cut shipments by 5%, foreign time May 4, Europe and the United States oil prices closed mixed. June WTI: 68.56 down 0.04 down 0.06%; July Brent: 72.50 up 0.17 up 0.24%.

Supply: A US MEG unit restarted and a US 830,000 t/y ethylene glycol unit has restarted and is running normally, the unit was previously stopped in mid-April for some reason. After the festival, the replenishment behavior is superimposed on the port to depot market trading atmosphere is fair.

Demand: Downstream polyester load continues to be adjusted downwards, several sets of polyester near May 1 in accordance with the maintenance or production reduction plan implementation, the same period also have part of the device recovery.

Forecast: Overall, the cost side support weakened, polyester production and sales are poor, the terminal order situation is sluggish. The short-term ethylene glycol market is expected to be narrowly oscillating.