Short-term ethylene glycol market shocks

The market was weak and consolidating on Saturday, with less trading in the market due to the weekend. As of 3:00 pm East China market prices at 4140-4150 yuan / ton near. 

Raw materials: the United States released non-farm payrolls employment data far exceeded market expectations, to ease the market recession doubts, foreign time on May 5, Europe and the United States oil prices closed up about 4%. June WTI: 71.34 up 2.78 or 4.05%; July Brent: 75.30 up 2.80 or 3.86%.

Supply: domestic supply increment is clear, the contradiction between supply and demand is expected to worsen, but the stage to depot superimposed on the strong rebound in international oil prices to form a strong support for the market.

Demand: downstream polyester load continues to be adjusted downward, May 1 near several sets of polyester in accordance with the maintenance or cut production plans to implement, the same period also have part of the device recovery.

Forecast: Overall, the cost side support is weakening, polyester production and sales are poor, and the terminal order situation is sluggish. The short-term ethylene glycol market is expected to run in a shaky manner.