According to the data of SunSirs, the spot price of ethylene oxide in China was stable on September 29, with the average market price of 7,500 RMB/ton, which was 16.58% higher than the average market price of 6,433.33 RMB/ton on August 23.
Analysis review
Since August, the price of ethylene oxide has been relatively strong, and the domestic ethylene oxide market has been running smoothly recently.
Fundamental prediction of ethylene oxide in the future
On the supply side, according to preliminary statistics, the expected new ethylene oxide production units in China in the future are as follows:
1. From the end of September to October of 2022, the annual production capacity of Satellite Petrochemical was 730,000 tons;
2. In October 2022, Sanjiang Chemical has an annual production capacity of 500,000 tons;
3. In the fourth quarter of 2022, Hainan Refining&Chemical Co., Ltd. has an annual capacity of 300,000 tons;
4. In the fourth quarter of 2022, Shenghong Refining and Chemical Co., Ltd. has an annual capacity of 100m000 tons.
In the first half of 2022, two new units of ethylene oxide in China had a total capacity of 280000 tons. If the above-mentioned 1.63 million tons of new units are put into operation, the total capacity of ethylene oxide in China will exceed 8 million tons.
On the demand side, one of the main downstream consumers, polycarboxylic acid water reducer monomer is also expected to expand its capacity in the fourth quarter. It is estimated that 750,000 tons of new units will be put into production, and the demand for ethylene oxide will remain in the short term. However, it is still needed to wait and see the terminal demand and the mismatch between supply and demand during the real estate recession.
