The decline in the domestic ethylene glycol market expanded last week, and the focus of trading fell. The high during the week was 4,100 yuan/ton, the low was 3,860 yuan/ton, and the weekly average price was 3,943 yuan/ton, down 157 yuan/ton from the previous week.
As market participants’ concerns about economic recession have rekindled, market psychology worried about sluggish demand has taken over, and external factors such as the strengthening of the U.S. dollar and the resumption of negotiations on the Iran nuclear deal have also joined forces to put pressure on oil prices. International crude oil prices have continued to fall. Under the drag of the cost side, The center of gravity of the ethylene glycol market continues to shift downward. Shipments arrived at the port sparsely during the week, and shipments from the main port were good. Inventory dropped significantly. As of Thursday, the inventory in the two warehouses was 1.1313 million tons, a decrease of 35,500 tons from Monday. The start-up of domestic equipment continued to be at low load. In the later period, There are still maintenance plans for some units, and output is expected to continue to shrink. However, Yulin Chemical’s 1.8 million tons/year ethylene glycol unit will produce products at the end of September, suppressing market confidence and the oversupply situation will continue. However, the recovery of downstream demand is less than expected, terminal orders are limited, Double Eleven orders have not yet been issued, and the Jiangsu, Zhejiang and Shanghai regions continue to be hot, and the power restriction policy has inhibited the start-up of looms, and the contradiction between supply and demand is still prominent.
On the whole, despite the sharp drop in costs, the current profit losses of various ethylene glycol processes are relatively serious, and there is a lot of room for profit repair. However, the current demand recovery is slow, and the market lacks confidence in the upcoming peak season. It is expected that the market will be difficult in the short term. There is a sharp rise, or the narrow range may be repaired.
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