Price trend
According to SunSir’s data, the average ex-factory price of oil-made ethylene glycol in North China was 3,417 RMB/ton on April 24, down 5.53% from last Friday.
On April 24, the price of ethylene glycol in East China was 3,310 RMB/ton, down 190 RMB/ton from the beginning of the week, a decrease of 5.43%.
Analysis review
As of April 23, ethylene glycol stocks in the mainstream reservoir area of East China were about 1.1036 million tons, a decrease of 46,800 tons from last Thursday, a decrease of 4.07%, and a decrease of 32,700 tons from this Monday, a decrease of 2.87%. Due to the low volume of arrivals at the port, inventories fell back
In terms of shipments, this week the average daily shipment of the main port of Zhangjiagang was about 0.62 million tons, and the average daily shipment of the two warehouses in Taicang was about 20 thousand tons. The delivery situation was still not optimistic.
At present, the ethylene glycol operating rate is about 46%, which continues to decline, and the downstream polyester operating rate is about 85%, which is the same as last week.
In terms of installation, China Sea Shell's ethylene glycol plant with an annual output of 480,000 tons was restarted on April 23; Yangzi BASF's ethylene glycol plant with an annual output of 340,000 tons will be overhauled on April 30.
Market outlook
On Monday, unprecedented U.S. crude oil futures fell to a negative value. Affected by this, ethylene glycol futures and spot prices also fell one after another. Since then, as crude oil prices have increased and inventories have fallen, ethylene glycol prices have also rebounded.
At present, because the overseas epidemic situation has not been controlled, terminal exports are greatly restricted. Although inventory has declined to some extent due to reduced arrivals, inventory is still at a high level relative to sluggish shipments. The demand side is weak. In the case of a pullback in oil prices, there is little room for ethylene glycol to fall, but the upward trend is not expected to be clear in a short time.
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