In the first half of 2021, the ethylene glycol futures price operating range is 4256~6280 yuan/ton. From the supply side, the total internal and external supply of ethylene glycol is expected to continue to rise. In terms of domestic production, starting from the third quarter, Satellite Petrochemical, Zhejiang Petrochemical, and Hubei Sanning will start mass production. At the same time, Guangxi Huayi, Gulei Petrochemical, Anhui Haoyuan, and Xinjiang Guanghui are expected to start mass production in the fourth quarter, although some old equipment may face shutdown dilemma, but the total domestic production still tends to increase. In terms of imports, the current maintenance losses of overseas installations in the second half of the year are expected to be less than those in the first half of the year, and import volumes will rebound further in the second half of the year.
In the second half of the year, the rigid demand for ethylene glycol is expected to rise steadily. In the second half of the year, polyester has a production capacity of 3.885 million tons/year to be launched, and the industry’s production capacity base will further increase. On the other hand, the overall profit of polyester factories this year is better than in previous years, and the market expects the polyester operating rate to remain between 90% and 93% in the second half of the year.
From the inventory side, ethylene glycol will start accumulating inventory in the second half of the year. The accumulating speed will be relatively slow from July to August, and the accumulating speed may accelerate from September. Currently, both ethylene glycol factory inventories and polyester factory raw material stockpiles are at low levels. After the launch of new production capacity, it is concentrated in the explicit inventory end of the port. If there is an unexpected shutdown on the supply side, port inventory is expected to decline in stages.
Key projects
Hubei Sanning Chemical Co., Ltd. in 6 In the middle of this month, the ethylene glycol unit was put into operation and polyester grade ethylene glycol was successfully produced.
Hubei Sanning’s ammonia synthesis raw material structure adjustment and joint production of 600,000 tons/year ethylene glycol project adopt East China University of Science and Technology’s multi-nozzle Gasification, full low-temperature isothermal transformation, low-temperature methanol washing, Honeywell UOP’s PSA hydrogen extraction, Casali ammonia synthesis, Stamicarbon pool-type urea reactor, Japanese high-chemical ethylene glycol and other technologies. In early March 2021, urea products were rolled off the production line.
This project is invested and constructed by Hubei Sanning Chemical Co., Ltd. and is located in Yaojiagang Chemical Industry Park with a total investment of 9.816 billion yuan. The project covers an area of 2,067 acres and has a construction area of 150,000 square meters.
Mainly construct coal storage and transportation equipment, gasification equipment, synthesis equipment, hydrogen/carbon monoxide separation equipment, sulfur acid production equipment, synthetic ammonia purification equipment, ethylene glycol purification synthesis equipment and supporting equipment public auxiliary facilities.
The annual production is 520,000 tons of synthetic ammonia, 520,000 tons of slow- and controlled-release urea, and 600,000 tons of ethylene glycol.
The project adopts internationally advanced pressurized coal gasification, sulfur-resistant shift and low-temperature methanol washing and purification technologies and large-scale low-pressure ammonia synthesis production technology, reaching the world’s advanced level of large-scale synthetic ammonia and urea production equipment.
While upgrading the production technology of synthetic ammonia, the company will co-produce ethylene glycol products, thereby realizing polyproduction and industrial upgrading of coal chemical industry. Adopt energy-saving and environmentally friendly technologies and adopt a circular economy development model to fully embody the circular economy concept of “reduce, recycle, and reuse” to maximize resource utilization and achieve the goal of green chemical industry development. </p
