Short-term ethylene glycol market expected to oscillate

On Friday, the market shocked upward, the general atmosphere of negotiation, the actual transaction is still possible, as of 3:00 p.m. that day, East China market closing prices at 4120-4130 yuan/ton near.

Feedstock: As core oil producing countries such as Saudi Arabia unexpectedly announced collective voluntary production cuts over the weekend, US crude oil surged more than 7% at the opening, refreshing more than two-month highs to above $81/barrel.

Supply: glycol high production high inventory pattern still needs time to digest, imports with Saudi Arabia and the United States glycol plant start-up to enhance, March-April imports will reach 56-58 million tons, the supply is still on the surplus state.

Demand: According to incomplete statistics, the downstream polyester load is above 90%, but the stock level of preparation is high, and the future port inventory is difficult to be depleted.

Forecast: Follow up more attention to the follow-up of Zhejiang Petrochemical, Hengli Petrochemical and other devices in April to start the conversion of the absolute low level of unilateral price support. On the whole, it is expected that the short-term ethylene glycol market will run in an oscillating manner.