Since August, the ethylene glycol market has continued to be sluggish, and the focus of market trading has continued to shift downward. As of August 10, the closing price of the East China market was around 4,075 yuan/ton, down 250 yuan/ton from the beginning of the month, and cash flow was severely squeezed. , under the continued profit losses, domestic equipment maintenance has increased. However, under the background of oversupply, the market boost is limited, and the off-season demand suppresses market rebound sentiment, and the contradiction between supply and demand is prominent.
Since the end of October last year, the profits of various ethylene glycol process industries have continued to suffer losses. The current cash flow of the naphtha process is around -240 US dollars/ton. Against the background of deep losses, equipment maintenance has continued to increase, and supplies in August and September There are still expectations for tightening.
In terms of demand, the current domestic economic environment is weak and the industry is in the off-season. Demand recovery is slow and terminal orders are limited. The recent recurrence of epidemics in some areas and the escalation of prevention and control measures have further dragged down market demand. In the medium and long term, the peak season of the “Golden Nine and Silver Ten” industry has arrived, and polyester factories will still release new production capacity in the later period, and demand is expected to pick up. However, the current market turnaround has not yet occurred, there is no substantial improvement in terminal orders, and demand support is not strong.
On the whole, although the current production shrinkage is obvious, the market spot supply is relatively abundant, and actual demand is difficult to provide solid support for the market. It is expected that the market will maintain low and volatile operations in the short term. Considering that the valuation of ethylene glycol is low, there will still be demand in the future. Room for profit repair.
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