Price trend
According to data from SunSirs, on July 19, the average price of oil-based ethylene glycol was 5,093.33 RMB/ton, an increase of 256.67 RMB/ton from the previous statistical cycle.
On July 16, the market price of ethylene glycol in East China rose. The average spot price in East China was 5,325 RMB/ton, an increase of 238 RMB/ton from Monday, an increase of 4.68%.
Analysis review
In terms of inventory, as of July 16, the total ethylene glycol inventory in the main ports of East China was around 580,000 tons, a decrease of 61,000 tons or 9.52% from the previous period.
In terms of equipment: two ethylene glycol plants in Saudi Arabia were unexpectedly closed, expected to last for 1-2 weeks; Serbang was shut down for maintenance on the 15th, and the expected duration is one month; Liaoning Beihua’s 200,000-ton/year plant shut down for maintenance on the 15th, and the expected maintenance time is about 40 days; Shandong Lihuayi's 200,000-ton/year ethylene glycol plant was overhauled on the 16th, which is expected to be about one week.
Although OPEC+ has reached an agreement to increase production, the situation of epidemic control in many countries is not very optimistic, the epidemic cases continue to rise, the demand for crude oil is expected to decrease, and the increase in oil prices has been curbed to a certain extent, but the current crude oil price is still at a high level in recent years and the cost side continues to be strong. Domestic ethylene glycol supply and demand are generally balanced, port inventory continues to deplete, and domestic and foreign equipment maintenance has boosted the market mentality. The downstream polyester end is still mostly based on rigid demand.
Market outlook
Affected by crude oil, the ethylene glycol market will fluctuate mainly.
