SunSirs: This Week, the Diethylene Glycol Market Saw a Narrow Consolidation (March 16-22)

Price trend

According to monitoring data from SunSirs, as of March 22, 2024, the reference price for diethylene glycol in the domestic market was 5,165 RMB/ton, an increase of 15 RMB/ton or 0.29% compared to March 15, 2024 (reference price for diethylene glycol was 5,150 RMB/ton).

Analysis review

This week (3.16-3.22), the domestic diethylene glycol market saw a narrow consolidation. The fundamental changes in the market this week were limited, with average import to port quantities and a slight decrease in inventory. Terminal shipments were relatively stable, with some increases in quantity. The overall supply was still relatively loose, and the downstream follow-up rhythm was stable. The supply-demand stalemate continued, but there was support from domestic equipment maintenance (the 500,000 ton/year ethylene glycol unit of Zhongke Refining and Chemical stopped this week for a planned maintenance period of 60 days; the 800,000 ton/year ethylene glycol unit of Zhenhai Refining and Chemical started to stop maintenance as planned on March 20th, with an expected duration of about 40 days). The market mentality was relatively mild, with narrow price fluctuations and stable operation. As of March 21st, the closing price in East China was 5,160-5,170 RMB/ton, and in South China it was 5,290-5,300 RMB/ton.

Market outlook

The last round of centralized warehousing before the end of the month had ended, and the subsequent supply pressure had slowed down. However, due to the planned shutdown of the equipment and the overall supply and demand structure not changing, the market operation intention was insufficient, and the consolidation trend was obvious. Diethylene Glycol Analysts from SunSirs believe that the overall market confidence is insufficient, and short-term consolidation is the main trend.

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