Last Tuesday, the ethylene glycol market fluctuated strongly, and on Friday, East China ports closed at 3225 yuan/ton. Diethylene glycol is moving upwards from the bottom, but there is no structural change in the fundamentals, and the actual effective support is insufficient. The market relatively lacks new direction guidance. The main port supply will increase in the latter half of the year, and most industry players are more cautious in their market judgments.
Fundamental analysis:
Supply: As of January 11th, Fubao’s inventory was 7400 tons, and Changjiang International’s inventory was 28600 tons.
Demand: Terminal demand is average, with domestic unsaturated resin factories operating at an average of 39%, up 3%. Traders are under pressure to ship. From January 9th to 11th, a total of 3770 tons of diethylene glycol were shipped from the two storage areas in Zhangjiagang, with an average daily shipment of 1257 tons over the weekend as of now.
Cost: The geopolitical situation between Russia, Ukraine, Iran, and Israel remains uncertain, and short-term potential supply risks continue, leading to an increase in international oil prices.
Market expectation: International crude oil is expected to operate weakly, with fluctuations in the range of diethylene glycol. The fundamental structure has not yet changed, and downstream purchases will be appropriately followed up. Short term fluctuations will be the main focus, and we will observe the unloading situation of large ships arriving at the port in the future.