The spot price has not yet stabilized on the 22nd. On the 23rd, the main force of ethylene glycol continued to lead the decline in chemical products, closing at 4,706 yuan, down 4.25%. The international oil price plunged in the Asian electronic trading market, and the cost weakened significantly. PTA and short fiber successively compensated for the decline, and fell respectively. 2.71%, 2.46%.
After the commodity market suffered a sell-off, market confidence remained fragile, limiting the rebound of oil prices, which took the lead in diving in Asian electronic trading today. U.S. President Joe Biden has pushed to reduce soaring fuel costs, including calling for a suspension of the federal gas tax. However, oil prices have fallen sharply recently, but diesel prices in Europe and the United States are still strong, and the Brent monthly spread structure is still strong.
The downward trend in costs and the lack of bright spots in PTA supply and demand have led to a correction in the main force of PTA, which has recorded eight consecutive negative days. With the restart of PTA maintenance equipment in early June, PTA production increased. However, due to the drag of the terminal, it is difficult to increase the polyester load.
The supply of ethylene glycol is still shrinking, but the demand link is weak and polyester yarn production and sales are poor. Port inventories have accumulated again. Data on Monday showed that the MEG port inventory in the main port area of East China was around 1.235 million tons. It further accumulated to a new high for the year, approaching the limit of storage capacity, suppressing the market mentality. As crude oil and coal prices adjust, short-term ethylene glycol mainly follows lower costs.
The Shanghai Petrochemical explosion caused the shutdown of two EG units at its factory, but it did not have a boosting effect on the market. Or the market believes that the impact on the overall operating rate of ethylene glycol is relatively slight. However, the impact of the accident on the supply of ethylene oxide is more significant. The price increase caused by the short-term supply gap may stimulate more petroleum-based ethylene glycol units to switch to the production of ethylene oxide, which may intensify the phased supply of ethylene glycol. gap.
Under the recent continuous decline in costs, the polyester staple fiber market has also sharply given back its previous gains. At the same time, judging from recent production and sales data, production and sales are relatively sluggish, and buying momentum is insufficient. Affected by high temperature and high humidity weather in the future, the electricity cost of textile mills is expected to increase in summer. At the same time, the yarn factory’s own profits are sluggish or even losing money, and the operating rate is expected to have a certain risk of decline. In terms of supply, after July, with the restart of maintenance equipment in Fujian, supply will increase significantly by then.
However, Longzhong Information predicts that supply and demand in the pre-short fiber market will remain tightly balanced before the end of June, and short fiber processing fees are still expected to recover to a certain extent. However, in the medium and long term, in the face of high costs, it is still difficult to recover processing fees upwards.
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