Introduction: During the National Day holiday, crude oil showed strong fluctuations, boosting ethylene glycol cost support. Port inventories dropped significantly, and downstream demand expectations improved, which made the market sentiment warmer. After the holiday, ethylene glycol prices increased significantly.
After the holiday, ethylene glycol is affected by crude oil Strong price support and declining port inventories have affected prices significantly. As of October 10, the spot price in East China was negotiated to 3,715 yuan/ton. The price increased by 85 yuan/ton compared with September 30 before the holiday. Ethylene glycol is off to a good start after the holidays.
From a cost perspective, crude oil futures prices rose during the National Day. It is reported that the hurricane caused a decrease in crude oil production in the Gulf of Mexico, and a strike by Norwegian workers reduced crude oil production, which has a boost to oil prices. The strong performance of crude oil prices has provided some support for ethylene glycol.
From the inventory point of view, the inventory of ethylene glycol on October 9 was 1.217 million tons, a decrease of 63,000 tons from before the holiday, indicating obvious destocking. According to the editor’s understanding, it is because the port unloading volume is small during the National Day, but the port shipments are smooth. It is expected that inventory will not change much in the short term as goods are replenished after the holiday.
From a downstream perspective, terminal construction has increased significantly after the holiday. The shipment of autumn and winter home textile fabrics is smooth. The prices of conventional fabrics such as polyester taffeta and pongee are rising. The market transactions are relatively active. The weaving operating rate has rebounded. The inventory has declined slightly. The textile market has improved and the market may be on the warm side. Affected by the good terminal market, the demand for polyester has exceeded expectations, and production and sales have increased compared with before the holiday. The market is expected to be warm in the short term.
Taken together, the cost of crude oil has been boosted, inventories have dropped, and downstream production and sales have improved, making the market sentiment warmer, and ethylene glycol prices have taken advantage of the situation to rise. However, with the subsequent commissioning of new devices, domestic supply will increase. Supply-side pressure remains, and market price increases are limited.
</p
