Price trend

Last week, the diethylene glycol market fluctuated with an upward bias, closing at 3,225 RMB/ton at East China ports on Friday. Diethylene glycol prices moved upward from their lows, but there were no structural changes in the fundamentals, and actual effective support was insufficient, leaving the market lacking clear direction. Supply at major ports is expected to increase in the latter half of the month, and most industry participants were cautious in their market outlook.

Fundamental analysis:

Supply: As of January 11th, Fubao's inventory was 7,400 tons, and Changjiang International's inventory was 28,600 tons.

Demand: Terminal demand was flat, and the average operating rate of domestic unsaturated resin factories was 39%, an increase of 3%. Traders were facing pressure to move inventory. From January 9th to 11th, the total shipments of diethylene glycol from two storage areas in Zhangjiagang amounted to 3,770 tons, with an average daily shipment of 1,257 tons as of now.

Costs: Geopolitical uncertainties in Russia, Ukraine, Israel, and other regions persisted, leading to continued short-term potential supply risks and rising international oil prices.

Market Outlook:

International crude oil prices are expected to remain weak, and diethylene glycol prices are likely to fluctuate within a range. The fundamental market structure has not yet changed, and downstream buyers are making purchases as needed. Short-term price movements will likely remain within a limited range, and further developments will depend on the arrival and unloading of large vessels.

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