SunSirs: Daily Review of Ethylene Glycol (February 16, 2022)

The latest price of ethylene glycol on February 16 was 5,258.33 RMB/ton.

Analysis review

In terms of inventory, as of February 14, the total amount of ethylene glycol inventory in the main port in East China was 800,500 tons, an increase of 52,500 tons or 7.02% from last Monday, and an increase of 5,100 tons from last Thursday, an increase of 0.64%.

In terms of installations, a 600,000-ton syngas-to-MEG installation in Xinjiang was temporarily shut down.

On the afternoon of the 16th, MEG was weak in the outer disk, and the recent cargo negotiation was 670-675 US dollars/ton. Oil prices recovered some of their lost ground in early trading on Wednesday. Many forecasters expected crude oil to reach more than 100 US dollars per barrel in the long term, with strong support from the cost side. Downstream demand is still weak, and polyester production and sales declined on the 16th. As of the 16th, the co-production EG unit was turned around, and the ethylene glycol operating rate declined slightly, but both EO/EG were in a state of loss, and the production of manufacturers was under pressure.

Market outlook

Dragged down by the demand side, it is weak and fluctuated, but at the current cost, there is not much downside.