The Supply And Demand Side Of Glycol Is Half Empty And Short Term Trend Is Narrow.

Entering the year July, domestic ethylene glycol supply recovery strength was limited, and the number of pre arrival ports was more, the terminals had the expected storage pool; the downstream polyester and terminal links were weakening, and the cut down production was expected to appear again.

In the short term, the market price of ethylene glycol is mainly based on narrow adjustment.

The cost side is mainly disadvantaged.

Last week, OPEC plans to limit production of good oil prices, to a certain extent, boost the industrial chain market. PX profit is basically near the cost line. If the market continues to go down, some enterprises will limit production and maintain value, and there will be more installations in the domestic overhaul or will support market sentiment. However, there are two new PX installations planned for operation in July, and businesses are worried about the supply increase. They are cautious and straddle. The Asian PX market is expected to shake up in the near future.

Supply side increment is relatively limited.

By the end of July 4th, the port port of East China's ethylene port had a stock of about 1 million 75 thousand tons, a decrease of 52 thousand and 500 tons compared with that of last Monday. But this week's pre arrival port of 239 thousand tons, the market pessimism is still heavier.

At the present stage, the supply of domestic glycol is abundant, the main port stock is high, the related products PTA is rising, and the downstream polyester demand is rising positively. The domestic ethylene glycol market price rises and profits are still losing. There is no substantial and large-scale production reduction in the domestic market. The market is hard to predict, and the maintenance enterprises delay the start-up time.

Demand side began to turn weakly.

The production and production plan of polyester factories coexist this week, including Huarun, new Feng Ming, Tiansheng, Jinqiao and so on. Meanwhile, the new capacity of 300 thousand metric tons of new capacity will be put into operation next week. The probability of downstream polyester start reduction is greater, and the terminal weaving field is affected by profits and orders, and the kinetic energy of the unit decreases, and the market is still waiting for substantial orders.

To sum up, the overall operating rate of domestic ethylene glycol manufacturers will remain at around 60%, and the operation rate of the downstream polyester plant will be low, and the overall production and marketing situation will be general; the crude oil market will continue to be weak and volatile in the short term, and will not be able to boost the ethylene glycol shortage. In the short term, the domestic two ethyl alcohol market will be narrowly concussion, and the market operators still need to be cautious. (source: Guo Ye net, Huaxi Village Commodity Exchange Center)