The demand for ethylene oxide gradually fades, and market stability remains the mainstream before the holiday

Source: Jinlianchuang Time: 2020-01-19

Since the general decline in late October and early November, domestic ethylene oxide prices have seldom fluctuated. During this period, prices in the Northeast and North China regions have only been adjusted within a narrow range, while prices in other regions have remained stable. Various rumors in the market continued in January, and as the Spring Festival approached, bullish and bearish sentiments also appeared in the market, but for now, the enterprise's stable shipments are still mainstream.

The recent rise in the ethylene market in Asia is obvious. The price of ethylene CFR in Northeast Asia has returned to US$820/ton, and the price difference with CFR Southeast Asia has also expanded to US$110/ton. Derivative product prices rebounded, demand performed well, and there were a lot of inquiries on the floor, but manufacturers in Northeast Asia had low willingness to ship, and overall market supply remained tight. As regional price spreads widen, inter-regional arbitrage goods are expected to increase. In addition, some loading and restarting messages appeared on the device side. At present, the price difference between ethylene and naphtha in Northeast Asia has returned above US$260/ton.

As the conflict between the United States and Iran eased, international crude oil prices continued to pull back, and the cost of ethylene glycol was loosened. The profit of ethylene glycol production is higher, the enthusiasm for domestic device production has increased, and there are still new devices planned to be put into production in the later period, and the supply has gradually increased. The downstream polyester factory's pre-holiday stocks are nearing completion, the production and sales of polyester are sluggish, and the start of construction is gradually declining, and the demand for raw materials is weak. Increasing supply of ethylene glycol and shrinking demand are expected to materialize gradually, and it is expected that the short-term ethylene glycol market will operate weakly.

Regarding polycarboxylic acid water-reducing monomers, downstream factories are taking vacations near the end of the year, and the logistics is basically shut down on the weekend. The market demand has been weakened. Some holders are pessimistic, and single orders are only discussed. As businesses continue to take holidays next week, the market may gradually enter a state of pricelessness.

On the whole, ethylene in Asia continues to rise, and the cost support of ethylene oxide has become more stable. The domestic ethylene glycol market soared and fell back, and the expectations are slightly weaker in the later period, but the factory's profitability is acceptable. The supply and demand side of the ethylene oxide market has limited volatility, and the company mainly maintains stable shipments without obvious pressure. With the gradual decline in demand, it is expected that the stability of the ethylene oxide market before the holiday is still the mainstream, paying attention to changes in the news.