Price trend
According to monitoring data from SunSirs, as of June 30, 2024, the reference price for diethylene glycol in the domestic market was 5,445 RMB/ton, a decrease of 30 RMB/ton compared to the price on June 1, 2024 (reference price for diethylene glycol was 5,475 RMB/ton), a decrease of 0.55%.
Analysis review
From the data monitoring of SunSirs, it can be seen that the domestic diethylene glycol market fluctuated within a narrow range in June. There was no significant change in the supply and demand fundamentals of diethylene glycol during the month, and the market trend remained stagnant. At the beginning of the month, there was a slight increase in inventory in the main port, with some devices having plans to restart. Supply support was weak, and downstream unsaturated resin production was weak and stable, coupled with news of polyester production reduction, the overall demand was weak, and industry participation was average, lacking favorable news to boost. The market fluctuated within a narrow range. During the Dragon Boat Festival, the arrival of goods at the port was concentrated, and the inventory at the main port accumulated to 46,900 tons. However, the number of ships expected to arrive later was relatively small, which formed a certain support for the supply expectation. At the same time, the number of wharf shipments increased compared with the previous period, and the market focus rose slightly. However, the demand side performance remained weak, lacking of upward momentum, and the market tended to consolidate. In the middle and late month, with the restart of domestic facilities and an increase in domestic supply, the number of shipments from the main port had shown a certain decline. At this time, the southern region entered the rainy season, and downstream unsaturated resins entered a seasonal off-season. Demand performance was sluggish, and the overall market trend was weakening, with prices falling narrowly. As the end of the month approached, the stalemate between supply and demand remained unchanged, and there had been no upward trend in the market. Although there had been a certain increase in shipments, there had been no substantial improvement in downstream demand. The diethylene glycol market had remained weak and stable, with relatively small price fluctuations.
Inventory and shipment situation: In June, the total shipment volume from the East China Port Area was 33,100 tons, an increase of 3,600 tons from May, with a daily average shipment volume of approximately 1,226 tons. In June, the downstream unsaturated resin entered a seasonal off-season, with weak demand. The quantity of shipments from ports in the middle and first ten days was general and unstable, while the delivery performance slightly improved in late of the month
Market outlook
In July, the domestic diethylene glycol market continues to fluctuate within a certain range, with the possibility of a slight strengthening. The changes of operating load of domestic and foreign devices may be limited, and the restart time of satellite chemical devices is yet to be determined, with little overall fluctuation in the supply side; Downstream unsaturated resins are still in a seasonal off-season, and after the rainy season ends, downstream demand may increase to a certain extent. At that time, the market may break the deadlock and there will be a corresponding upward trend. Overall, the domestic diethylene glycol market in July is mainly volatile, with some room for growth. Pay attention to inventory, demand variables, and changes in market sentiment.
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