Price trend

According to the monitoring data of SunSirs, as of February 16, 2023, the market reference price of diethylene glycol was 5,376.67 RMB/ton, up 43.34 RMB/ton or 0.81% compared with the price on February 9, 2023 (5,333.33 RMB/ton).

Analysis review

It can be seen from the data monitoring of SunSirs that the domestic diethylene glycol market had a narrow range rise this week, and the delivery of goods from the ports in East China was good and stable, with a strong intention to follow up the offer. As of February 16, the spot price and this week's negotiation price were at 5350-5360 RMB/ton, while the market in South China was affected by the trend of the market in East China, and the holders had slightly increased their prices. As of February 16, the mainstream spot price was around 5,550-5,600 RMB/ton. This week, the international oil price rose as a whole, and the cost side support was stronger.

From the perspective of supply, the main port kept good delivery and the recent shipping schedule gap, and the inventory continued to decline. As of February 13, 2023, the inventory of East China port was about 40,800 tons, down by 3,300 tons from last week, down by 7.48%.As of February 16, 2023, the total inventory of the two warehouses in Zhangjiagang reservoir area was 39,000 tons, down by 2,100 tons from last week. On the whole, the performance of the diethylene glycol supply side was fair.

From the perspective of demand, the commencement of unsaturated resin in the downstream increased slightly this week, and the demand for diethylene glycol remained stable, so there was some support on the demand side. In general, the cost side support is relatively strong, the supply and demand fundamentals support is relatively stable, and the market price continues to rise.

Market outlook

It is expected that the styrene market will mainly fluctuate lower in the short time. Although the destocking at the port is stable, there will be a large number of arrivals next week. The expected restart of a 280,000 ton unit of Wuhan Petrochemical next week will result in an increase in domestic production and poor performance at the supply side. In addition, in the short term, the downstream unsaturated resin manufacturers are mainly under-started, and the demand for diethylene glycol is difficult to increase significantly. The diethylene glycol analyst of SunSirs believes that the support at the cost side is insufficient, the supply side is affected by the negative effect, and the demand is relatively stable, and the market price of diethylene glycol in the short term is likely to decline by a narrow margin.

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