SunSirs: Ethylene Glycol Prices Rose in Late August

https://www.chemnet.com   Aug 30,2024 SunSirs

Ethylene glycol prices rose in Late August ????

The price of ethylene glycol rose in late August. According to data from SunSirs, as of August 29th, the average price of domestic oil based ethylene glycol was 4,663.33 RMB/ton, an increase of 1.97% from August 20th. The prices in each region were as follows:

The spot price range for mainstream manufacturers in East China was 4,600-4,795 RMB/ton; The spot price of ethylene glycol in the South China market was 4,600 RMB/ton.

On August 29, 2024, the basis of the spot contract for ethylene glycol at the port was close to low and far from high. The paper cargo basis quotation for the 01 contract this week ranged from 0 to+2; The basis of forward contracts was relatively strong, with a basis price of 15-20 RMB/ton in September. Recently, the basis has strengthened.

On August 29th, the price of coal to ethylene glycol remained basically stable, with a domestic price range of 4,200-4,330 RMB/ton, including taxes.

On August 28, 2024, the external price of ethylene glycol was as follows: the landed price in China was 560 US dollar/ton, and the landed price in Southeast Asia was 556 US dollar/ton. The domestic landed price had slightly increased compared to the 22nd.

Reasons for the rebound in ethylene glycol prices this week:

The import volume of ethylene glycol to the port has decreased??

Last week, there was a concentration of goods arriving at the port, resulting in accumulated inventory data. However, this week's expectations for the port had declined, leading to a decrease in inventory data. As of August 29, 2024, the total spot inventory of ethylene glycol in the main ports of East China was 673,300 tons, a decrease of 10,900 tons from the total spot inventory of ethylene glycol in the main ports of East China on August 22, which was 684,200 tons.

Load reduction of supply side is expected to rise

On the supply side, the scale of production reduction in ethylene glycol plants had recently expanded, partly due to the favorable price difference of EO conversion, achieving production capacity conversion, and partly due to planned shutdown and maintenance. On the demand side, downstream demand is expected to be strong during the peak season, with a turning point in the peak season for gold September and silver October, and a slight rebound in downstream operating rates.

Recent Developments in Ethylene Glycol Plant

Northern Chemical will restart at the end of the month, while coal production facilities such as Shenhua Yulin and Henan Coal Industry will be shut down, and 830,000 tons of coal from overseas markets in the United States will be shut down due to unforeseen circumstances.

Market outlook

As of August 29th, the absolute amount of explicit inventory in ports was still relatively low. This provided some support for the price of ethylene glycol.

It is expected that the price of ethylene glycol will fluctuate to be stronger in the short term, but the price ceiling will narrow.

If you have any questions, please feel free to contact SunSirs with?support@SunSirs.com.

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