Short-term ethylene glycol market oscillation run

The market rebounded slightly yesterday. As of 3:00 pm East China market prices were around RMB 4180-4190/ton. 

Raw materials: U.S. recession doubts eased, supply tightening is expected to support oil prices further higher, foreign time May 8, Europe and the United States oil prices closed up more than 2%. June WTI: 73.16 up 1.82 or 2.55%; July Brent: 77.01 up 1.71 or 2.35%.

Supply: device, Xinjiang, a set of 600,000 tons / year of syngas to ethylene glycol plant will be stopped recently, the initial expected parking time from one month, follow up. The supply and demand of glycol gradually turned to a depot pattern.

Demand: Downstream polyester load continued to be adjusted downward, several sets of polyester near May 1 were executed according to the overhaul or production reduction plan, and some devices were also restored during the same period.

Forecast: Overall, poor terminal orders dragged down the pessimistic sentiment of polyester side, domestic supply side gradually increased, but the recent port arrival less, port inventory continues to de-stocking, international oil prices rebounded strongly to boost commodity sentiment, is expected to short-term ethylene glycol market oscillation run.