SunSirs: Ethylene oxide briefing last week (May 16-May 20)
http://www.chemnet.com May 24,2022 SunSirs
Ethylene oxide remained stable this week. At present, the ex factory price of ethylene oxide in East China, North China, South China and Northeast China is 8200 RMB/ton, and that in Central China is 8300 RMB/ton.
Upstream, oil prices fell on Friday as investors worried that weak global economic growth and the tightening of monetary policy by the central bank might curb the recovery of fuel demand. The weakening of upstream crude oil and naphtha prices has led to a sharp decline in ethylene prices in Asia, and some industry insiders believe that there is still a bearish trend in demand in the future.
The cost of ethylene oxide is loose, the market of CO produced ethylene glycol is poor, and the supply side of EO is relatively abundant. Based on the current external market and exchange rate, EO has been running near the cost line, and the commencement remains around 70%.
The downstream monomer market demand is still recovering at a slow speed, there will be no shortage on the supply side, and the market pessimism is becoming stronger.
Prediction: the continuous decline of ethylene has made room for the decline of ethylene oxide, which may end the platform period that has lasted for more than two months.