Ethylene Glycol Port Stocks Declined Slightly Or Short-Term Trend

Port inventory declined

The port inventory of ethylene glycol in East China is about 795 thousand and 200 tons, the chain ratio has dropped, polyester production and marketing is around 58%, and production and marketing are relatively general. In September 2nd, the amount of ethylene glycol in the mainstream reservoir area of Zhangjiagang was 9400 tons, and the amount of ethylene glycol in the mainstream reservoir area of Taicang was 3000 tons.

On the basic side, the inventory of main ports in eastern China fell on Monday, and the main port shipped well, showing a good demand for storage. Some parts of the device are heating up recently, the supply side or the pressure of storage. In the short term, the supply and demand relationship of ethylene glycol is balanced, and port inventory fluctuates within a certain range.

Demand side production and sales increase slowly

Demand side, golden nine silver ten is the traditional peak season for consumption, polyester end is gradually stabilized, polyester factory load is in the same period of high position, inventory remains neutral, and is in the business cycle of high output, high profit and low inventory.

But its sustainability and height will still be affected by terminal weaving. Peripheral demand is approaching the peak season, and exports are expected to improve. However, due to the uncertainty of Sino US trade friction and the current weak global macro environment, the overall demand for this year is weaker than in previous years, and the medium and long term situation is not optimistic.

In terms of downstream polyester demand, the average operating rate of the industry will continue to rise, but the terminal weaving finished goods inventory is high, foreign trade orders shrink, and the market trend of ethylene glycol is dragging.

The supply side is mostly for production reduction and overhaul.

At present, the average operating rate of polyester industry is about 89.93%. Although there are Huaxiang and Pan Asian devices for maintenance, many sets of pre production and maintenance devices are resumed, such as new Feng Ming, Tian Sheng, Rong Sheng, Cheng Gao. Late wankai 1 million 200 thousand tons, Halliday 200 thousand tons of equipment has maintenance expectations, but the multi set storage restart is expected, and in September there is a new production plan, the specific production time remains unchanged.

Generally speaking, domestic supply is in a tight state in the short term, and the demand for the downstream is increasing. There is a slight upward trend in the ethylene glycol market this month. But in the long run, the terminal market continues to be weak, ethylene glycol is not strong enough, and the periphery is also uncertain. The trade situation between China and the United States is escalating and the market atmosphere is weak. The short-term market of ethylene glycol is expected to remain stable. (source: Guo Ye net, Ruida futures)