Glycol Market Trend Increased, But Hard To Find At The Bottom.

In March 30th, there was a panic trend in the domestic glycol market. According to the closing price, the spot price of the Jiangsu market fell 205 yuan / ton at 2890 yuan / ton, or 6%, and the futures contract 05 main contract fell by 8%.

Although the recent overseas epidemic intensifies, the international oil slump and other negative pressure, the downward trend of energy products is obvious, but the decline from the day of ethylene glycol is the top of the chemical products. According to the price in March 30th, the drop in the month also reached 32%, and the new low in the past 20 years has been constantly refreshed.

Ethylene glycol has started a downward trend since 2019. It has always been in the market empty distribution products, resulting in a low price base in 2020. This macro margin appeared. Ethylene glycol did not shrink due to the low price base. The new low in the past 20 years has been refreshed.

The main logic of the weakness of ethylene glycol is the overcapacity. Since 2018, China's coal glycol has started to concentrate on driving, breaking the balance between supply and demand of ethylene glycol. In early 2020, the large scale petrochemical unit of Zhejiang and Hengli Petrochemical made 2 million 550 thousand tons of normal production capacity, making the total capacity of China's ethylene glycol nearly 14 million tons, compared with the beginning of 2018. 50%, the emergence of the epidemic has a major impact on the world economy. Ethylene glycol is an important raw material for polyester. The demand for terminal clothing has a great correlation with the economic situation. Therefore, for more than 90% of the demand comes from the production of ethylene glycol, the impact is self-evident. Under the situation of increasing supply and demand, the contradiction between supply and demand is more prominent. Ethylene glycol has become a trend of decline. Short positions in the market, so the overall performance of the market is weak when the rebound, leading to a decline in the state of decline.

However, in March 30th, the decline was too large, which led to the amendment in March 31st. Therefore, in the chemical market products in March 31st, ethylene glycol rebounded more vigorously, but this did not mean that the bottom of ethylene glycol had been verified. In the future, even if the situation is alleviated, crude oil will rebound. However, considering the far-reaching impact of the epidemic on the economic level, the pressure of supply and demand of ethylene glycol is still the main driver of the market. Therefore, ethylene glycol will continue to be the empty product of chemical products in the future, and the weak pattern will be maintained for a long time.