Price trend

According to data from SunSirs, on August 31, the average P value of oil-based ethylene glycol was 4,133.33 RMB/ton, down 16.67 RMB/ton from the previous statistical cycle.

Analysis review

In terms of cost, the price of international crude oil futures fell sharply on the 30th, and traders took profits after the sharp rise in oil prices in the previous trading day, because the global economic recession fears under high inflation continued to weaken the outlook for global oil demand, and Iraqi oil supply has not been affected by the domestic turmoil. Spot valuations of light distillates in Asia rose, driven by gains in crude oil futures markets. The spot price of naphtha rose to 70.47 US dollars/barrel, and the spot naphtha spread rose to +2.57 US dollars/barrel.

The power curtailment policy caused by weak demand and high temperature has kept the polyester construction at a low level, and the demand side has weak support. At the end of the month, as the temperature dropped slightly, some cities relaxed power curtailment, and the operating rate of downstream looms in Zhejiang and Jiangsu increased. Supply-side restart and overhaul coexist. Weihe Binzhou Chemical Co., Ltd. overhauled at the end of August, Tongliao Jinmei Chemical Co., Ltd. shut down the plant on August 26, Hubei Sanning’s 600,000-ton plant has restarted output, and China Salt Red Sifang’s 300,000-ton/year ethylene glycol unit restarted on August 28. In terms of inventory, as of August 29, the total amount of ethylene glycol inventory in the main port in East China was 1.0431 million tons, a decrease of 39,800 tons or 3.68% from last Monday, and a decrease of 35,500 tons from last Thursday, a decrease of 3.29%. The main port inventory continued to destock, and the pressure on the supply side was reduced.

Market outlook

The fundamentals are weak, and it is expected that ethylene glycol will continue to fluctuate at a low level.

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