Price trend

According to the monitoring data of SunSirs, as of January 12, 2023, the market reference price of diethylene glycol was 5,566.67 RMB/ton, which was the same as that of January 5, 2023.

Analysis review

It can be seen from the data monitoring of SunSirs that the domestic diethylene glycol market price was first depressed and then increased this week. As of the 12th, the market price in East China was 5,280 RMB/ton, and that in South China was 5,330 RMB/ton.

The Asian economy has gradually warmed up, boosting demand and boosting market optimism. At the same time, the Federal Reserve has slowed its expectation of interest rate increase, the US dollar has continued to fluctuate at a seven-month low, the international crude oil futures price has stopped falling and rises, and the cost side support is relatively strong.

On the supply side, the port inventory decreased slightly this week. As of January 9, 2023, the East China port inventory was about 262,500 tons, a decrease of 13,500 tons compared with last week, a decrease of 4.89%. In addition, there were not many port arrivals recently, and the port inventory was expected to continue to decline, and the supply side showed a positive trend.

This week, the downstream UPR market was basically having price but no buyers. In addition, factories had entered the holiday period one after another, with most manufactures stopping production. The pre-holiday goods preparation was basically over, and the logistics and transportation were also basically close to the end. The buyers and sellers were mostly waiting for the holiday, so the demand side of diethylene glycol was weak. In general, the support of the cost side was strong, the performance of the supply side was fair, and the performance of the demand side was still weak, so the market price of diethylene glycol depressed first and then increased.

Market outlook

At present, there are not many expected arrivals in the near future, the port inventory is expected to continue to decline, and the supply side performs well; Downstream UPR plants have been shut down for holidays, and the stock preparation before the holiday has basically ended. In the short term, the demand for diethylene glycol is relatively cold, and the demand side is difficult to boost; At present, the supply side of the crude oil market will become the dominant factor. It is expected that the international crude oil price will fall in shock next week, with insufficient support at the cost side. The diglycol statistician of SunSirs believes that the cost side support is insufficient and the supply side is good, but the demand support is weak, so it is expected that the market price of diglycol will be weak and downward next week.

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