Glycol: trading on the opening day of the causeway dropped more than 5%

The glycol futures contract officially opened on Monday at the trading house.The first listed trading contracts are EG1906, EG1907, EG1908, EG1909, EG1910 and EG1911, and the listed base price is 6000 CNY/ton.

Domestic commodity futures were mostly lower on Monday as new contracts rose or fell by the daily limit of 8 per cent on the first day of trading, followed by 5 per cent on the previous session's settlement price.EG1906, the main glycol futures contract, closed down more than 5.43% to close at 5,674 yuan today, with the highest price at 5,781 yuan and the lowest price at 5,550 yuan holding 674,676 positions.

Now the organization of petroleum exporting countries (Opec) production cuts "boots" December 7 sunset.Opec and non-opec producers agreed to cut output by 1.2m barrels a day from January 2019 for an initial six-month period.If the agreement can be faithfully implemented, the oil market may balance in the future and boost market confidence to a certain extent. At present, the oil price is close to the bottom region, and unless the global economic situation shows a sharp downturn, the space for further decline in the oil price is limited.

And ethylene glycol of supply and demand pattern of weak basis for the bearish market, downstream polyester end demand has always been tepid, and part of the downstream clients have finished purchasing stock last week, current spot demand is limited, most market participants within the rest of the year on demand temporarily not optimistic, demand side temporarily difficult to appear stronger positive boost, the supply side, near east China port is about 700000 tons of inventory at present, nearly more than 40000 tons of cargo last week delay because of the weather reason, still this week have added more than 220000 tons of cargo, port big probability to maintain high inventory, supply adequate performance.

At present, glycol has fallen below the expected market position of 5700 on the first day of its listing. Technically, this position is obviously strongly supported. In addition, the following crude oil low range moves upward in stages, which can provide support in terms of cost.