Ethylene glycol prices are on the rise this week. As of January 26, the average price of domestic oil-based ethylene glycol increased by 6.71% from the beginning of the month, with an increase of 2.45% during the week.
The price of ethylene glycol has risen significantly since December 2023 due to factors related to overseas installation news and continued destocking of inventories. The current price has exceeded the highest level in 2023 and is lower than the price on December 15, with an increase of 11.21%.
The price of ethylene glycol moved up this week, mainly due to the continued decline in inventory data and the improvement of supply and demand fundamentals.
Weekly week-on-week destocking
As of January 25, 2024, the ethylene glycol inventory at the main port in East China was 836,000 tons, which was 1.2255 million tons higher than the inventory high (December 7, 2023), and continued to decline by 389,500 tons unilaterally. Looking at the week, on the 18th, the inventory of ethylene glycol in the main port of East China was 930,000 tons, and 94,000 tons were destocked.
Domestic port inventories have declined this week. On the one hand, it is due to the expected decline in overseas imports caused by the shutdown and maintenance of overseas equipment, as well as the impact of the Red Sea incident on domestic shipping. On the other hand, it is also due to the long closure period of main ports during the week. , Port Unloading Limited.
Market outlook
The main variables currently affecting the price of ethylene glycol are the implementation of the reduction in import volume and whether the underlying cost support brought by crude oil & coal prices continues.
Ethylene glycol port inventories have moved downward, in line with early expectations of overseas supply shrinkage, and the ethylene glycol price center has moved upward. In the short term, ethylene glycol prices will mainly run on the strong side.
Post time: Jan-29-2024