Ethylene Glycol Prices Rose 12% This Month, Optimistic About The Rebound In March.

Last week, the spot market was down sharply, and the spot trading in East China was 5230 yuan / ton, but it was 12% higher than that of 5000/ in February 28th.

In addition, polyester production and marketing to better, finished product inventory has dropped.

The price of raw material ethylene dropped, the cost side support slightly weak.

In the short term, with the increasing pressure of inventory on the market, funds still have doubts about the upward trend of ethylene glycol.

Upstream support preference

Upstream crude oil, the recent market risk appetite boosted, plus Russia plans to accelerate oil production in March, and in the first quarter to achieve production targets.

In addition, the market generally believes that the April OPEC meeting may prepare for the extension of production cuts at the June policy meeting, and is confident that it will further extend its production to the end of December.

On the whole, short-term oil prices are expected to continue to show strong volatility.

PX, CNOOC Huizhou PX plant maintenance, this month, domestic supply will decrease, while PX profit is high, enterprises have room for profit.

Downstream production and marketing began to improve

Polyester production and marketing began to improve significantly last week, the production and sales rate increased to a maximum of about 210%, and short-term demand warming led to an increase in raw material price purchase demand, thus promoting the price of polyester raw materials.

But judging from the price increase, PTA is slightly stronger than ethylene glycol, which is mainly due to the gap between the two suppliers.

In addition, polyester profits have a certain tolerance for the price rise of ethylene glycol.

Polyester products are profitable to varying degrees. Since February, the average profit of filament products has been over 450 yuan / ton since February. Short staple profits have been around 720 yuan / ton, and the profit of bottles has been around 470 yuan / ton, and the slice profit is near 200 yuan / ton.

Short term downstream polyester industry has a certain tolerance for the upward adjustment of raw material prices.

Short term port stocks remain high

As of March 7th, the MEG port in East China's main port area has a stock of about 1 million 165 thousand tons, an increase of 93 thousand tons compared with last Thursday.

Among them, 86 tons in Zhangjiagang, an increase of 38 thousand tons per annulus, a daily average delivery of some 7000 tons of a mainstream warehouse, 84 thousand tons of Ningbo, an increase of 7 thousand tons per annulus, 99 thousand tons of Shanghai and Changshu, an increase of 52 thousand tons per annulus, 91 thousand tons of Taicang, an increase of 3 thousand tons per annulus, and an average daily delivery of about 4000 tons in the mainstream reservoir area.

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At present, the downstream inventory is still neutral, and the stocking time of the terminal weaving enterprises is more than 25-30 days, which means that the purchasing intention of the lower reaches will begin to increase from March, and the prices of MEG and polyester products are all low, and the order status of polyester enterprises is still good.

Industry analysts say that overall demand for ethylene glycol will also increase as the downstream downstream of the terminal restarts.

Under the influence of relatively low price and beginning of demand side, the market of ethylene glycol in March will rebound.