Price trend

From the commodity market analysis system of SunSirs, it can be seen that this week (4.1-4.7), the overall market price of diethylene glycol had risen significantly. As of April 7, the market price of diethylene glycol was around 7,600-7,700 RMB/ton.

Analysis review

In terms of cost, on April 2nd, multiple oil producing countries announced further production cuts, international oil prices significantly increased and cost support was stronger. On the supply side, the inventory of diethylene glycol supply side fluctuated at a low level, coupled with large-scale device load reduction production and maintenance plans, resulting in low supply pressure. The favorable supply side supported the market's focus upward. In terms of demand, port shipments were good, downstream UPR and polyester demand were steadily advancing, and future demand is expected to improve. The fundamental performance was stronger, and the cost side support was strongly, so the market price of diethylene glycol rose broadly in the week.

Market outlook

At present, the downstream acceptance of high prices has decreased, and the intention to follow up on the diethylene glycol market has slowed down. The overall trading activity has decreased. Diethylene glycol analysts from SunSirs believe that in the short term, the overall atmosphere of domestic diethylene glycol is strong, and the market trend remains firm. In the long run, with the restart of domestic devices, the sustained upward momentum may be limited, and it will also be affected by macroeconomic instability factors, there is a risk of high price consolidation or a pullback. It is still necessary to pay attention to device operation, port inventory, and downstream follow-up.

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