In August, Ethylene Glycol May Experience a Weak and Volatile Market Trend in China

July 31st, according to news,

In July, the price of ethylene glycol in China first increased and then decreased.

In July, the ethylene glycol price first rose and then fell, showing an inverted "V" trend. In the early stage, influenced by the anti-internal competition sentiment in China, the prices of major commodities increased, driving the steady rise in ethylene glycol prices. This week, with the decline in coal prices, the ethylene glycol price slightly dropped.

August bearish factors for ethylene glycol in China

1. Saudi installations have resumed operations, alleviating concerns about overseas supply. Although current port arrivals and import data remain relatively low compared to the same period, the turning point is approaching, and imported shipments will gradually recover.

2. Chinese external ethylene glycol plants have slightly increased their load, with a strong expectation of supply recovery;

3. Domestic demand (terminal demand) is traditionally weak in July and August, and ethylene glycol consumption is expected to remain weak during this off-season.

August Ethylene Glycol Bullish Factors in China

1. Short-term MEG inventory is low, and although there is an expectation of inventory accumulation, the overall inventory from July to September remains at a low level with a relatively balanced supply and demand in China.

2. Although the overall anti-competition sentiment for goods has been recently interrupted, the trend remains.

Future Market Outlook

In summary, it is expected that the price of ethylene glycol in China may fluctuate weakly in August.