Polyester Filament: Callback And Load Reduction; Ethylene Glycol: Over Million Tons Of Equipment Centralized Maintenance! Polyester Market Ended Abruptly, The Market Rebound Too Much Pressure!

It rose for several days and fell again.

During the May 1 period, the international crude oil market was strong, and the polyester market was rising to varying degrees, especially in polyester filament. Prices of various products increased by 100-600 yuan / ton. But in the past two days, the market fever declined rapidly, and the price of polyester decreased significantly. Among them, FDY and POY products had a drop of 80 yuan / ton, while DTY products were relatively stable.

　　 The main reason for the price fluctuation of polyester is that the demand for terminal garments has shrunk, resulting in a difficult market for fabrics and grey fabrics, resulting in the spread of polyester prices. After the spread of the new crown epidemic, global demand has sharply reduced and orders are hard to come out. Although some countries in Europe and the United States have begun to resume work recently, the epidemic has severely depressed the economy, and demand recovery is still more difficult. Although clothing is a necessity, there is no big problem in not buying clothes for a period of time.

At present, the entire textile market is still temperate, lack of order support. The reduction of terminal demand leads to the difficulty in making polyester filament production and marketing. Only when the crude oil market is strong can it lead polyester waves to carry goods, and the rest of the production and marketing are relatively dull, centered around 5 percent. At the same time, polyester stocks are still at a relatively high level.

Weaving does not buy, high inventory, resulting in polyester factories began to reduce the negative operation. After the "gold three silver four" hopes to fail, after the May Day festival, the market has not improved significantly. As of 8, polyester factories reduce the load of polyester filament to about 78.2%.

　　 Whether it is polyester or polyester raw material, fabric or fabric market, the most important factor determining its life and death is demand. The load of polyester decreases, and the demand for polyester raw materials naturally decreases. Ethylene glycol, as one of the most important raw materials of polyester filament, can not be spared.

Recently, glycol has ushered in a wave of centralized maintenance.

In May 7th, Yangcheng coal Shouyang set up a 220 thousand ton synthetic gas MEG plant to stop and repair for a month.

In May 7th, a set of 220 thousand tons of synthetic gas made MEG plant in Shenzhou stopped for a month.

In May 9th, a set of 420 thousand tons / year MEG plant was stopped for repair, and it was expected to be overhauled for 1-2 months.

A 340 thousand ton / year MEG plant in East China has been stopped for maintenance. The device is scheduled to be overhauled for 45 days.

A set of 100 thousand ton / year ethylene glycol unit in Tianjin Petrochemical has been shutdown and overhauled. It is scheduled to be overhauled until June 20th.

In fact, in 3 and April, the glycol plant underwent a large overhaul. Since the OPEC+ reduction agreement failed to bring about the market panic as a result of the global spread of expectations and the global spread of the crude oil, the international crude oil prices have plummeted. The collapse of the oil price caused the collapse of the cost side of the chemical products market, and the spot price of ethylene glycol once fell below 3000 yuan / ton.

The biggest reason for the market's weakness in ethylene glycol is due to the contradiction between supply and demand.

In terms of demand, the sluggish demand for polyester has seriously restricted the market of ethylene glycol.

On the supply side, since 2018, China's coal based ethylene glycol began to concentrate on driving, breaking the balance between supply and demand of ethylene glycol. In early 2020, the total production capacity of Zhejiang petrochemical and Hengli petrochemical company was 2 million 550 thousand tons, and the total capacity of China's ethylene glycol reached nearly 14 million tons. Compared with the beginning of 2018, the growth rate reached 50%, making the supply and demand more obvious. 。

This ethylene glycol plant is once again overhauled, which is also related to the weakening of its basic structure.

Glycol load is low, but stock is still rising.

The most direct impact brought by overhaul is to relieve the pressure of supply and demand. Recently, there are many maintenance plans for ethylene glycol plant, as well as early maintenance of the plant has not been restarted, resulting in recent ethylene glycol load is still low, even lower than the level during the Spring Festival. As of May 8th, the glycol plant load had dropped to about 61.9% from the previous stage.

The load has declined, but the stock is still rising. As of May 8th, the East China main port inventory of ethylene glycol was near 1 million 236 thousand tons, reaching a high level in the past 9 months. Among them, Ningbo is 110 thousand, Shanghai and Changshu 83 thousand tons, Zhangjiagang 733 thousand, Taicang 165 thousand tons, Jiangyin 75 thousand tons, Changzhou 70 thousand tons.

Before the May 1 holiday, ethylene glycol was concentrated in Hong Kong, but it was restricted by port congestion, and the ship unloading rate was slower and inventory slowed down. After the holiday, the inventory of ethylene glycol increased significantly, and the port was closed due to strong winds, which led to delays in port delivery process and serious detention of port cargo.