Price trend

In August, the price of ethylene oxide increased. According to data from SunSirs, as of August 23, the average market price of ethylene oxide in China was 6,300 RMB/ton; From a regional perspective, the average market price in North China was 6,400 RMB/ton, East China was 6,300 RMB/ton, Central China was 6,400 RMB/ton, and South China was 6,500 RMB/ton.

Analysis review

In July, the prices of the main downstream polycarboxylate water reducing agent monomers were strong, and the off-season effect was weak. As of August 23, supply and demand were still tightly balanced.

Supply side

Previously, the price of ethylene oxide was relatively low, and some manufacturers hit the cost line, facing increasing pressure of loss. The operating rate of manufacturers was relatively low, and some enterprises underwent equipment maintenance. In addition, some production factories might switch to producing ethylene glycol or adjust their own usage ratio to alleviate production and sales pressure. Overall, there were frequent malfunctions in the ethylene oxide plant, leading to a tightening of market supply.

Cost side

From a cost perspective, the mainstream processes in China are divided into naphtha, ethane/mixture, external ethylene production, MTO route, etc; Among them, the naphtha route accounts for about 49% of the total, followed by ethane and externally extracted ethylene. With the rise of crude oil prices in July, the price of raw ethylene was firm, and the cost support for ethylene oxide was strong.

Ethylene oxide prices rose in August

In the short term, the cost support for ethylene oxide had strengthened, and with the transmission effect of upstream and downstream product prices, the price of ethylene oxide had improved. On the supply and demand side, under the increasing losses of ethylene oxide enterprises on the supply side, production enthusiasm was not high, external sales of enterprises were decreasing, and domestic supply showed a tense situation. The downstream market support was relatively limited during the high temperature off-season on the demand side. In summary, the price of ethylene oxide may enter a plateau after rising in August.

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