Ethylene glycol: Market prices are operating weak amid expectations of increased supply

On May 23, the market price index of ethylene glycol was 4107.40, down 11.44 from yesterday.

Market focus:

1. The market is waiting for the outcome of the US debt ceiling negotiations, and both IEA and OPEC release expectations of tighter supply, and international oil prices rise. Ice crude oil futures 06 rose US $0.44 per barrel or 0.61% per barrel or 0.51 per cent NYMEX oil cloth futures 07 rose 0.41 US dollars per barrel or 0.54 per cent.

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. Zhejiang Sinopec No. 3 plant is shut down first, and the recovery time is to be determined.

Futures trends:

May 23,2023 EG main contract 2309 opening price: 4152, highest price: 4188, lowest price: 4115, settlement price: 4151, closing price: 4124, position: 330738, down 76 from the previous working day, down 7.81%.

Spot market: today, the price of ethylene glycol market continues to be weak, the production of new devices and the restart of temporary shutdown devices, under the influence of increased supply, industry pessimism is rising, coupled with the average cost support, the current market is expected to weaken at the same time. In the morning, the center of gravity of MEG inner disk is low, and the market talks are general. At present, the spot base difference is around 85-95 yuan / ton of 09 contract discount, negotiation is 4060-4070 yuan / ton, part of the transaction is 4065-4070 yuan / ton. In the afternoon, the center of gravity of the inner disk of MEG is weak, and the market negotiations are weak. At present, the spot basis difference is near the 09 contract discount of 85-90 yuan / ton, the negotiation is 4035-4040 yuan / ton, and part of the transaction is 4045-4060 yuan / ton. As of press time, the quotation in South China is around 4280 yuan / ton, down 120 yuan / ton from the previous working day, while the quotation in East China is around 4097 yuan / ton, down 62 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:

The market is waiting for the outcome of the US debt ceiling negotiations, and both IEA and OPEC are expected to release tighter supply expectations. International oil prices have risen, and cost support is general. Recently, some new units in the Chinese market have been put into production. Sanjiang Petrochemical's 1 million-ton annual EO/EG plant is about to produce products, and the pre-shutdown devices are gradually restarted. Under the influence of the increase in market supply, the pessimism of the operators in the market is strong, although the start-up of the downstream market has been alleviated. However, the overall transaction still maintains rigid demand, and the industry is still cautious. Overall, it is expected that the short-term ethylene glycol market price is weak and volatile, in the later stage, we need to pay close attention to the crude oil, coal prices and the operation of the plant.