SunSirs: This Week, the Domestic Diethylene Glycol Market Experiences a Narrow Pullback after Consecutive Gains (December 2-8)

Price trend

According to monitoring data from SunSirs, as of December 8, 2023, the reference price for diethylene glycol in the domestic market is 5,900 RMB/ton, an increase of 300 RMB/ton or 5.36% compared to December 1, 2023 (reference price for diethylene glycol was 5,600 RMB/ton).  

Analysis review

This week (12.2-12.8), the domestic diethylene glycol market experienced a narrow pullback after consecutive gains. This week's shipping schedule was almost vacant, and inventory levels were decreasing in a stepwise manner under constant port shipments. The two basic data were balanced and pressure free, providing bottom support for market operations. At the beginning of the week, port inventory decreased, market sentiment was strong, and the market's focus was upward; In the middle of the week, supply continued to decrease, and buying followed up more actively, with the market driving up one after another; At the end of the week, port shipments fell, market action weakened, sentiment became cautious, and prices fluctuated and rebounded. As of Thursday's close, spot prices in the East China market closed at 5,890-5,910 RMB/ton; The spot price in the South China market closed at 5,950-5,960 RMB/ton.

Market outlook

At present, the market supply is tight, and although there will be a wave of concentration on ships in the next week, the pressure on the supply side is still not significant; Entering mid December, downstream demand may continue to maintain a weak and stable trend, with limited market support provided by the demand side; Moreover, the recent supply shortage has led to market prices reaching a temporary high. Without any other positive support, market sentiment will return to caution, and there is a possibility of volatility weakening. According to analysts from SunSirs, in the short term, the domestic diethylene glycol market will mainly consolidate at a high level, and attention will be paid to changes in market sentiment and demand follow-up.

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