Why Does "Glycol" Increase In The Downstream?

Recently, polyester filament yarn,

Viscose staple fiber, polyester staple fiber, etc.

Raw materials are constantly warming up and "rising tone".

In the low season

Under the market conditions, textile raw materials are rising and rising vigorously.

However, ethylene glycol, which is also an upstream raw material, is still not active, and the market is still high.

In fact, the recent fundamentals of ethylene glycol are still more optimistic. Ethylene prices are strong, and downstream polyester products are rising. Meanwhile, ethylene glycol has little pressure on its supply. Why is it that everything is ready, and the price is not up?

Robust fundamentals underpinning the role of driving power shortage

Raw materials: in the past month, the price of ethylene in Asia is relatively tight, and the price is relatively strong. The average monthly price is 1130 US dollars / ton, and the average price is 1062 US dollars / ton from last month, up nearly 68 US dollars / ton.

Therefore, the cost of glycol is strong.

However, because of the weakness of the crude oil surface and the lack of power for ethylene to rise sharply, ethylene can hardly form a thrust for ethylene glycol.

Supply side: at present, the domestic glycol market started near 7, which dropped by nearly 7 percentage points from the beginning of the month.

In addition, the inventory of ethylene glycol in East China port is also maintained at a mean of 640 thousand tons, and the pressure on port area inventory is not large.

However, glycol is still powerless.

Demand side: in recent years, the polyester plant has remained at a high level, especially the polyester filament factory, which has been continuously affected by the union price insurance conference, and its production and sales have been picked up, and its stock has also dropped to a low level.

However, the strong momentum of polyester has not been pmitted from bottom to top to the upstream raw materials.

Ally PTA is blocked by funds and warehouse receipts, and the market is also hard to spot.

Last week, PTA 6 million 600 thousand tons of equipment in Northeast China unexpectedly stopped, and the price of PTA and MEG rapidly climbed.

When the market forecasts polyester raw materials or will follow the polyester filament to play the "polyester market big reversal", PTA has fallen back and forth on the rebound road.

By the end of July 25th, the warehouse receipts for PTA futures of Zhengzhou commercial bank reached 1058040 hands, and the potential delivery volume reached nearly million tons, which is equivalent to half a month's output in China.

No matter how high the downstream is, PTA's huge warehouse pressure has become the biggest factor affecting the PTA market.

In the past week, the domestic commodity market has been frustrated, and the black line products with better uptrend in the early stage also have different degrees of downward trend.

Black is short, chemical products are being dragged down.

This week, the whole bulk market continued its weakness last week, curbed the market operation of ethylene glycol, lacked the guidance of the main force, and the market was coming soon.