DEG: Short-term deadlock may continue

Recently, the market trend of Diethylene Glycol has been slightly depressed. Under the upswing of commodities, the electronic disk of diethylene glycol has gone down against the trend, which makes you smell a little bit of the stalemate in June this year.

Recently, the diethylene glycol market has maintained a weak fluctuation trend, and the strong mentality supported by the low inventory level of the main port has been quietly disintegrated. Affected by the increase of import and arrival sources in December and the recent sustained rebound of inventory in the main port of East China, the speculative entrance sentiment of middlemen has weakened. In addition, the main downstream unsaturated resin Market in mid-late December is in the off-season of the industry today, especially in the late December. Resin companies in the northern market may be expected to reduce their load. In December, diethylene glycol market negotiations continued to weaken.

In contrast, the recent performance of South China market is eye-catching. Due to the influence of the previous Zhuhai port closure, Taiwan's cargo arrival in South China has been delayed, which has resulted in the sustained high-level operation of South China's diethylene glycol market. Some first-hand merchants have persisted in their quotation mentality, and the market negotiation price has remained above 7350 CNY/ton. There are sporadic 7400-7500 CNY/ton single negotiations, as can be seen from the figure. The price difference between the two cities has been widened to about 300 CNY/ton, and the arbitrage window of South and East China markets has been opened again. Relatively speaking, the local first-hand merchants are relatively cautious and have no expectation of re-export of East China. On the one hand, 2000 tons of imported goods have arrived in Hong Kong recently. On the other hand, they have delayed Taiwan's supply or arrived in Hong Kong after one week. On the other hand, the upstream resin terminals have been affected by the soaring market of Maleic anhydride in recent years. The overall start-up of construction has been reduced, and the purchase of diethylene glycol has just been reduced. South China has recently become strong. The market may be difficult to sustain for a long time.

Although the overall performance is slightly weaker in the recent market, the inventory of East China's main port is still at a relatively low position of 50,000 tons, and the recent shipments of East China's main port reservoir area are relatively stable, and there is no significant increase in the inventory of diethylene glycol in the later period. As far as the recent commodity market and related products are concerned, the overall trend of strong shocks is maintained. In particular, the short-term strong pattern of related products still exists under the sustained low inventory of Styrene. Overall, the short-term market of diethylene glycol is expected to maintain a narrow range of volatility.