The short-term glycol market is expected to run in consolidation

The market was muted yesterday with a general trading atmosphere. As of 3:00 pm East China market prices were around RMB 4030-4040/ton. 

Raw materials: U.S. GDP weakened in the first quarter, but Russia said no need for further oil production cuts, foreign time April 27, Europe and the United States oil prices closed higher. June WTI: 74.76 up 0.46 or 0.62%; June Brent: 78.37 up 0.68 or 0.87%.

Supply: supply side, Shaanxi a set of 300,000 tons / year of coal to ethylene glycol plant is scheduled to stop in early May for maintenance, is expected to last about three weeks, the device is currently running at full capacity. Later in April-June, with the conversion and overhaul of ZPMC and satellite petrochemicals, the domestic supply dropped to 1.2 million tons/month, and the supply and demand of ethylene glycol gradually turned to a depot pattern.

Demand: Downstream polyester demand is sluggish, with May Day holiday orders reduced. Some of the overhaul units restarted, terminal performance is poor, polyester load narrowly declined, supply and demand pattern gradually deteriorated.

Forecast: From a comprehensive point of view, crude oil rebounded and the supply and demand pattern is poor, the short-term glycol market is expected to run in consolidation.