Ethylene glycol: Supply side is improving and spot market prices are increased within a narrow range

On May 15th, the market price index of ethylene glycol was 4172.29, up 27.32 from the previous working day.

Market focus:

1. Renewed market concerns about the possibility that the economic recession may dampen demand, coupled with the strengthening exchange rate of the US dollar, international oil prices fell for three consecutive days. NYMEX crude oil futures 06 fell by US $0.83 per barrel or 1.17% per barrel or 1.17%.

2. The 300000-ton syngas MEG plant in Weihe, Shaanxi Province began to be shut down and overhauled on May 8th, which is expected to last for 15-20 days.

3. Xinjiang Tianye 600000-ton ethylene glycol plant is stopped for maintenance, which is planned for one month, and the 50, 000-ton ethylene glycol plant in the old area operates normally.

 

Futures trends:

On May 15, 2023, the opening price of the EG main contract 2309 is 4402, the highest price is 4409, the lowest price is 4324, the settlement price is 4366, the closing price is 4347, and the position is 424348, up 4% or 0.09% from the previous working day.

 

Spot market: today, the price of ethylene glycol market is fluctuating, and the futures market is fluctuating in a narrow range. Although there is still some support in the cost side, due to the weak demand downstream, the cautious mood of the operators in the market is gradually rising. Specifically, in the morning MEG inner disk center of gravity shock weakened, market negotiations in general. At present, the spot base difference is near 92-100 yuan / ton of 09 contract discount, and the negotiation is 4240-4250 yuan / ton, and part of the transaction is around 4260-4295 yuan / ton. In the afternoon, the center of gravity of MEG inner disk is arranged in a narrow range, and the market talks are general. At present, the spot basis difference is around 90-95 yuan / ton of 09 contract discount, and the negotiation is 4255-4260 yuan / ton. Part of the transaction revolves around 4245-4255 yuan / ton. As of press time, the quotation in South China is around 4450 yuan / ton, maintaining the previous working day, the quotations of some manufacturers are strong, and the overall trading atmosphere in the market is light; the quotation in East China is around 4275 yuan / ton, up 23 yuan / ton from the previous working day.

List of market prices on the outer disk:

 

List of mainstream market prices:

 

Enterprise price list:

Unit: yuan / ton

 

Future forecast:

There is renewed concern that the economic recession may dampen demand, coupled with the strengthening exchange rate of the US dollar, international oil prices have fallen for three consecutive days, and cost support has weakened, but at present, some devices in the Chinese market are stopped for maintenance, supported by favorable supply side. market prices are high, and as of May 15, inventory in East China has changed little, and consumption of rigid demand downstream has been stable. At present, affected by the reduction of supply, the contradiction between supply and demand in the Chinese market has slightly alleviated, and some operators in the market have a positive mentality. It is expected that the price of ethylene glycol will be high in the short term, and in the later stage, we need to pay close attention to the prices of crude oil and coal as well as the operation of the plant in the field.