Introduction: Coal and crude oil have performed strongly recently, with obvious cost support. In addition, inventory at the main port remains low and spot liquidity is tight. Under the dual positive support, the focus of the ethylene glycol spot market continues to strengthen.
The performance of raw materials is strong, and the gross profit of the ethylene glycol market of each process is further compressed
Figure 1 Each process Ethylene glycol market gross profit comparison trend chart
Source: Longzhong Information
The performance of the ethylene glycol raw material end is even stronger. Due to the shortage of coal supply and the influence of superimposed policies, the market focus continues to strengthen. For coal-to-ethylene glycol, the cost pressure is increasing. Data from Longzhong Information shows that, The immediate profit from coal-to-ethylene glycol has dropped to -1,745 yuan/ton. The market gross profit of other processes is also difficult to achieve profitability, and all ethylene glycol production companies are facing tremendous pressure.
Affected by the typhoon, the inventory of the main port in East China dropped sharply
Figure 2 Ethylene glycol inventory comparison chart in East China’s main ports
Source: Longzhong Information
Typhoon “Sandu” is approaching the coast of China this week. Major ethylene glycol ports in Shanghai, Taicang, Zhangjiagang, Ningbo and other places have closed navigation. The inventory in the main port has dropped significantly. As of this Thursday (September 16) The inventory of ethylene glycol at the main port is 493,600 tons, a decrease of 52,800 tons or -9.66% from the previous statistical period.
On the whole, the domestic supply side still maintains a tight situation, and the strong performance of the raw material side has formed an effective support for the market. Under the support of high costs and low inventory, , Domestic ethylene glycol has continued its strong trend recently. However, regarding the market outlook, some maintenance equipment will be restarted, Gulei will also be put into production, and the expectation of accumulation of inventory in the later period is relatively clear. In addition, the performance on the demand side is not ideal. Although terminal orders have recovered, companies are still focusing on digesting high inventories and have insufficient motivation to proactively follow up. The room for short-term rise in the ethylene glycol market is limited, and merchants are advised to be cautious in pursuing long positions. </p
