With the news of the extension of the crude oil production reduction agreement, international crude oil lacks the motivation to follow up, and the trend of the cost side has stabilized, and the ethylene glycol market has returned to a volatile range.
Profit and loss of production route , providing support for ethylene glycol
Data source: Jin Lianchuang
The recent rebound in international crude oil prices and the strengthening of naphtha prices have brought the profits of the ethylene glycol petroleum production route to the edge of profit and loss; Asian ethylene prices have continued to trend stronger due to the shortage of supply, which has also reduced the profits of the ethylene production route. A loss occurs. From the perspective of coal and methanol production routes, the current market price is far lower than the process cost, and the profits of coal and methanol production have been at a loss, which has also caused domestic coal plants to shut down for maintenance on a large scale. At present, only the petroleum production route maintains a profit-loss margin, while other process routes are in a loss-making state, which provides strong support to the market price of ethylene glycol.
Port inventories have climbed to a high level, suppressing the market’s bullish mentality
Data source: Jinlianchuang
Jinlianchuang’s latest data shows: East China B2 on June 18 Alcohol stocks totaled 1.29 million tons, an increase of 27,000 tons from June 11, including 797,000 tons in Zhangjiagang (an average daily shipment of 6,534 tons from a certain warehouse); 160,000 tons in Taicang; 149,000 tons in Ningbo; 106,000 tons in Jiangyin; and 106,000 tons in Yangyin. 43,000 tons in Shanshan; 35,000 tons in Changshu. 275,000 tons are expected to arrive at the port next week. The pressure on the supply of goods arriving at the port remains unabated and the delivery speed at the port is slow. There is not much room for destocking ethylene glycol. The inflection point of port inventory is difficult to show in the short term. The supply is not in danger, which puts pressure on market prices.
At present, the international crude oil prices continue to fluctuate at high levels and the losses of various process routes have provided certain support for ethylene glycol. , and the high port inventory and subsequent restart of equipment also make it difficult for the market price to continue to rise, and the short-term ethylene glycol market may continue to fluctuate and consolidate. </p
