Ethylene glycol prices rose, EO may continue to break

Price trend of ethylene glycol in China

After the National Day holiday, the ethylene oxide market has experienced three waves of rising prices, with an increase of 900-1100 CNY/ton. The main reason is that the price of ethylene glycol, a related product, has risen sharply, which has significantly boosted the ethylene oxide market, leading to prominent correlation between the two.

Price trends of ethylene oxide in China

After the Spring Festival holiday in 2021, ethylene oxide and ethylene glycol have been linked up the market. After the National Day holiday, many places power cuts, high raw material prices, as well as the domestic many sets of equipment shutdown and other factors, ethylene glycol and ethylene oxide reproduction linkage rise. Recently, the price of ethylene glycol has exceeded the industry's psychological expectation, 6500-6700-6900-7000 CNY/ton, and even today's high price exceeds 7400 CNY/ton. This positive lead ethylene oxide market bullish sentiment positive, a small spot price increase of nearly 700 CNY/ton.

Under the influence of various force majeure factors, the average starting load of ethylene oxide industry is low. From late October to November, there were two SETS of EO devices in south China for maintenance, and the supply situation in the region will be tightened accordingly. The price of ethylene glycol in the region will be boosted by the rise in the price of ethylene oxide in Maoming Shihua/Zhongkech Refinery in South China rose 100 CNY/ton to 9300 CNY/ton today. Other regions have also been affected by power rationing or environmental protection policies, resulting in a low overall operating load and tight supply of goods. According to downstream factories, due to the reduction in the supply of raw material ethylene oxide, this month's contract volume has been reduced to varying degrees.

Therefore, based on the above situation, Lonzhong Information expects that the price of ethylene oxide will continue to rise strongly, with an expected increase of 300-400 CNY/ton. Downstream polycarboxylic acid superplasticizer monomer high price transaction is cold, but most of the device parking or negative, combined with the backlog of old single, spot inventory is low, the price is still expected to pull up.