Introduction: The ethylene glycol market has experienced a volatile decline recently, and the overall atmosphere continues to be weak. Although there are also strong price trends, the market still has a certain bearish mentality.
Data source: Jin Lianchuang
From the supply side: a 900,000-ton/year unit in Lianyungang, Zhejiang, started operation around the Dragon Boat Festival holiday, an 800,000-ton/year unit in Hainan Refining and Chemical Co., Ltd. started operation, and a large plant in Zhejiang, an 800,000-ton/year unit, restarted. The supply side is expected to increase significantly, and the port is tired. The inventory reached 970,300 tons, an increase of 31,300 tons from the same period last week, and the shipment performance was also relatively average, with no positive support on the supply side.
From the demand side: the current downstream polyester production continues to rise to around 90%, which is a relatively high start-up position this year, and the inventory of polyester factories is not high due to recent promotions, but because polyester is currently in the off-season, the overall buying momentum is On the weak side, as long as you use it, you can buy it. The entire market still lacks substantial positive support.
Taken together, the ethylene glycol market may continue to fluctuate in the future. In terms of crude oil, after entering July, Saudi Arabia will independently reduce production by 1 million barrels per day, which may provide a certain support for the crude oil market in the later period. In the short term, international oil prices may fluctuate and rise slightly, and cost-side support will strengthen; at the same time, a large factory in Zhejiang The 750,000 tons/year device plans to restart at the end of the month, and some devices have increased their load, resulting in a certain increase in output. As the arrival volume increases, the port may still accumulate inventory; while the polyester production operation remains high, but the current downstream demand is weak, and It is still in the off-season for polyester, and the demand is mostly maintained. The short-term market may be volatile, so it is recommended to operate with caution.