The Price Trend Of Ethylene Glycol Rises Strongly.

Although faced with high inventory pressure, crude oil prices continue to strengthen, the cost side up and the recent weakening of the renminbi, to provide certain support for the market, domestic ethylene glycol prices have been strong in recent years.

Crude oil is strong, glycol ends up.

Cost comparison chart of ethylene glycol in China

Source: lung Chung

After the collapse of international crude oil, international oil prices have gone through a wave of strong rise. Brent has come from the lowest level. Nineteen point three three dollar / The barrel climbed to the present. Thirty-five point three three element / Barrels, up to as high as 82.77% 。 The production cost of the integrated device is also coming. Three hundred and eighty dollar / Near the tonne, the cost of monomer ethylene is even higher. Six hundred dollar / Near tonnes.

On the other hand, the RMB exchange rate has been strong in recent years, which also has certain support for the cost of imports. It is estimated that the cost of the ton has increased. One hundred element / About tonnes. Combined with the above factors, the valuation of ethylene glycol has also been improved, which is also the most important factor in the recent trend of ethylene glycol in China.

High inventory accompanied by domestic volume regression, ethylene glycol still under pressure

East China main port glycol inventory chart

Source: lung Chung

Domestic main port glycol inventory is increasing, has reached One hundred and twenty-eight point two three Ten thousand tons, up to the same period last year, there are different degrees of stagnation in the main port area. According to the understanding of the port area, due to the problem of tank capacity, the inventory space is very limited, but the phenomenon of detention also reflects the probability of short-term drop in storage is relatively small.

Domestic maintenance equipment will be returned one after another. Six In July, Qian Xi coalification was restarted. In late, Yangzi BASF and China sand Tianjin will also be restarted. In addition, Xinjiang Tianye ten beach. Twenty The 10000 ton plant has also entered the commissioning phase. Six The end of the month will be stable. Comprehensive domestic output Six In the month, incremental expectations began to emerge, and supply and demand conflicts worsened.

To sum up, at present, the fundamentals of ethylene glycol are weak in chemical products. In the case of worsening expectations of supply and demand, it is not recommended that participants should continue to chase more in the short term.