The High Price of Maleic Anhydride Led to the Downturn of DEG

The price of Maleic anhydride rose again due to the combination of tight supply and blocked epidemic transportation. Take Shandong solid anhydride as an example: on December 9, the outbound price of Shandong solid anhydride was around 16,000 CNY/ton, up about 24% from the previous month. The surging price of maleic anhydride had a great impact on UPR's stocking sentiment, and the port pickup volume of Diethylene Glycol fell immediately.

The domestic Maleic anhydride market rises rapidly, the supply side continues to drive the strong rise, the price quickly close to the historical high. Three factors promote the spot shortage of maleic anhydride: 1, the parking device is still not started; 2. The new production capacity device is still being debugged; 3. Transportation has been blocked due to the epidemic. The enthusiasm of maleic anhydride downstream enterprises to start construction has been significantly reduced, and the UPR market price has increased significantly.

For diethylene glycol, the downstream end of UPR factory orders is not over, still there is a wave of stock in early December, and the price of maleic anhydride to pull up broke the stock plan, persisting in November and the second half of the period of about 4.5 million tons less than average daily shipments, demand diethylene glycol, a slide bearing the market price, combined with the port of the arrival of the goods quantity still more, inventories continue to increase, The fundamentals of the bearish speculation mood gradually dissipated. From the fundamentals of the market trend is difficult to have a good sustainability, for the increase in demand to reduce the domestic diethylene glycol market high fall operation.

From the current situation, the downstream stocking cycle may be delayed, and the short-term bearish atmosphere is relatively difficult to digest, the cost of international oil prices may save about $3 a small rise space, but the recent correlation between diethylene glycol and crude oil is relatively limited, the future of crude oil volatility guidance is insufficient. Short - term diethylene glycol market in supply and demand suppression is difficult to have ideal upside space.