Price trend
Ethylene oxide was stable this month. As of the latest price, the ex-factory price in North China, South China, Northeast China and East China was 8,200 RMB/ton, and the ex-factory price in Central China was 8,400 RMB/ton.
Analysis review
From the perspective of cost, ethylene was affected by the fluctuation of crude oil, and the price of ethylene in Northeast Asia had repeatedly hit new highs. It had gradually risen from 1,230 US dollars/ton at the beginning of the month to 1,370 US dollars/ton on March 31, a total increase of 140 US dollars/ton, an increase of 11.38%. Domestic ethylene also rose to 9,100 yuan / ton, up 3.41% from the beginning of the month. According to the current price of the outer market, ethylene oxide had lost nearly 1,000 RMB/ton, and the profit margin had been lost. It is reasonable for manufacturers to limit production and insure the price.
From the perspective of supply, although Dana, Sanjiang, Shanghai Petrochemical and Satellite Petrochemical and other units may reduce their load or stop, but due to the demand side, the improvement of supply and demand structure is limited.
From the perspective of demand, the construction progress of the project was constrained, the entry and exit procedures of the chemical park under the influence of the epidemic were complicated, the logistics efficiency was affected, and the terminal demand was weak. However, some people in the industry believe that although the recovery of the demand side is currently blocked, according to the policy, there is still room for the demand of the infrastructure industry to release throughout the year. After the epidemic is brought under control, there may be a repairing rebound in the demand side, and the monomer market will improve.
Market outlook
On the whole, the long-short game continues, it is very difficult to catch up with the high cost and weak demand, and the market's light atmosphere will continue in the short term.
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