On December 17th, the diethylene glycol market closed slightly higher, with spot prices in East China closing at 3020 yuan/ton,+5 yuan/ton; South China closed at 3245 yuan/ton, temporarily stable.
fundamental analysis
Supply: During this period (December 16-22), Zhangjiagang is expected to receive 20830 tons of ships, including one domestically produced ship, and there will be a significant increase in both the number of single ships and the number of ships during the period, leading to a noticeable increase in inventory pressure. As of December 16th, Fubao’s inventory is 8500 tons, and Changjiang International releases its inventory every Monday.
Demand: There has been no improvement in terminal demand, with an average of 36% of unsaturated resin factories operating domestically, a decrease of 1% from last week, putting pressure on traders to ship. On December 16th, the total shipment of ethylene glycol from Zhangjiagang’s two storage areas was 1302 tons, an increase of 44 tons compared to the previous day.
Cost: Market concerns about long-term oversupply have only increased, coupled with positive signals from the Russia Ukraine peace talks, international oil prices have fallen to their lowest level since early February 2021, and cost support has weakened.
Market expectation: International crude oil is running weakly, the market is returning to a downward trend to build a bottom, domestic imports are taking turns to replenish the supply side, the demand side is seeking stability, the market lacks adjustment opportunities, the mentality of industry players continues to be weak, and the emotional level is compounded by negative fundamental structure, making it difficult for diethylene glycol to break free from the bottom.
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