The domestic ethylene glycol market fluctuated at a low level in July. The high point during the month was 4,420 yuan/ton in the first ten days of the month, and the low point was 4,140 yuan/ton in the middle of the month. The average monthly price fell by 553 yuan/ton to 4,288 yuan/ton.
In early July, amid concerns that the global economic recession might suppress fuel demand, Japan’s international oil prices plunged sharply. With cost support collapsing, ethylene glycol market prices fell sharply. In the first half of this month, port arrivals were relatively small, and the main reason was that Shipments from the port were sluggish, and inventories continued to rise. The peak during the month was 1.2258 million tons. Under the pressure of high inventories, market prices were under pressure. Downstream began to concentrate on purchasing. Shipments from the main port rebounded significantly. Inventories continued to be eliminated, and decreased to 115.67 in the second half of the year. Thousands of tons. There were a lot of equipment maintenance during the month. With the crude oil and coal prices at high levels, the ethylene glycol industry fell into deep losses. The restart of some equipment was delayed. The overall operation was maintained at low load. There are still equipment maintenance plans in the future, and the supply is further tightened. As expected, downstream polyester factories are also gradually implementing production reduction plans under the pressure of high inventory, with the start-up falling to around 79%. Terminal orders have not yet shown substantial improvement, and demand recovery is slow, dragging down ethylene glycol market sentiment.
On the whole, despite the tightening of supply due to equipment maintenance, in the long term, the domestic oversupply situation will continue, and in the weak economic environment, demand recovery is slow, and the current valuation of ethylene glycol is low. There is room for profit restoration, and when demand gradually recovers in the later period, the market is expected to rebound.
</p
