SunSirs: The Price of Ethylene Oxide Moved Down after Coming Back from New Year's Day

The price of ethylene oxide moved down after coming back from New Year's Day

According to the data of SunSirs, the average price of ethylene oxide in the domestic spot market on January 4, 2023 was 6,300 RMB/ton, unchanged from yesterday, and 500 RMB/ton lower than the average price of 6,800 RMB/ton in the spot market before New Year's Day.

On January 4, the listing price of ethylene oxide in all regions of China was 300-500 RMB/ton lower than that before the New Year's Day. The listing price of the mainstream market in all regions was as follows:

The external implementation of ethylene oxide market in East China was 6,300 RMB/ton; Ethylene oxide market in South China was 6,300 RMB/ton; The listing price of ethylene oxide market in Central China was 6,300 RMB/ton; The listed price of ethylene oxide in North China was 63,00 RMB/ton, and that of some manufacturers in Northeast China was 6,300 RMB/ton.

Ethylene oxide industry chain

On the whole, weak downstream demand was the main reason for the weak and stable price of ethylene oxide.

Fundamentals Overview

On the supply side, ethylene oxide production capacity was relatively stable, the price of raw ethylene changed little, and support was limited.

On the demand side, the main downstream polycarboxylic acid water reducer monomer is facing the Spring Festival holiday, the terminal real estate operating rate moves downward, the terminal building construction conditions are insufficient, and the demand is expected to weaken significantly. At present, the inventory of polycarboxylic acid water reducer monomer enterprises has accumulated to a medium high level, the enthusiasm of enterprises for production has declined, and the purchasing atmosphere for ethylene oxide is weak. In the early stage, when the fundamentals of ethylene oxide were weak, the ethylene oxide manufacturers and traders holding the goods had been holding prices for a long time. After New Year's Day, the willingness to reduce prices and ship goods was enhanced. As the Spring Festival approached, the willingness to capitalize increased.

Market outlook

The price of raw ethylene is relatively stable, the terminal demand is weak, and the downstream demand is restrained. The market of polycarboxylic acid water reducer monomer in the main downstream is facing the Spring Festival holiday, the operating rate of terminal real estate moves down, and the demand for ethylene oxide is expected to weaken. In the early stage, the price of ethylene oxide has been trading sideways for a long time, and the supply and demand fundamentals have not improved. After coming back from New Year's Day, ethylene oxide is expected to maintain a weak stable trend in the short term after the price of ethylene oxide moved down.

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