In August, the domestic ethylene glycol market fluctuated and fell. The high point during the month was 4,325 yuan/ton in the first ten days of the month, and the low point was 3,860 yuan/ton in the middle of the month. The average monthly price fell by 235 yuan/ton to 4,052 yuan/ton.
International crude oil prices experienced ups and downs during the month. As market participants’ concerns about economic recession rekindled, market psychology worried about sluggish demand gained the upper hand. External factors such as the strengthening of the U.S. dollar and the resumption of negotiations on the Iranian nuclear agreement also joined forces to put pressure on oil prices. International crude oil prices continued to fall. , dragged down by the cost side, the downward pressure on the ethylene glycol market increased. Shipments arriving at the port this month are few, port shipments are in good condition, and inventory has been significantly reduced. As of August 29, the inventory at the main port in East China was 1.0431 million tons, a decrease of 119,800 tons from the end of last month. At the same time, there are many domestic ethylene glycol plants undergoing maintenance, construction starts continue to be low, and output continues to shrink. The supply side provides bottom support for the market. However, Yulin Chemical’s 1.8 million tons/year ethylene glycol plant will be put into operation at the end of September, and market pressure will increase. At the same time, the domestic economy Weakness, due to repeated epidemics in some areas and the impact of high temperature weather, demand recovery is slow. Market participants are worried about the upcoming peak season. The current loom operation is low, terminal orders are limited, Double Eleven orders have been postponed, and demand is still weak.
Taken together, there is still room for profit recovery under the low valuation of ethylene glycol. The “Golden Nine and Silver Ten” peak season is coming, and the market will pick up. However, at the same time, the commissioning of new equipment will also put pressure on the market, and the contradiction between supply and demand is still relatively prominent. On the whole, Look, it is expected that the ethylene glycol market may fluctuate widely in September.
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