Diethylene glycol oscillation pattern maintained pending the opening of the supply and demand pattern

     The impact of this round of epidemic on domestic logistics and transportation, life production can be seen, diethylene glycol main port overall lifting speed slowed down, to warehouse cycle lengthened. International crude oil rebounded strongly after a brief downward adjustment, but the domestic market is difficult to come out of the clear market under the suppression of fundamentals.

　　As of March 24, Zhangjiagang two depots inventory at 61,800 tons, the epidemic week Yangtze River International and Fu Bao depot shipments total 9,573 tons, the average daily shipment of about 1,368 tons, down 10.2% compared to the last cycle.

　　Recent factors affecting the trend of diethylene glycol are in a state of play. On the cost side, international crude oil rebounded to around US$110/barrel, with chemical cost support firming up. Fundamentally, the overall port shipments fell back this week due to the epidemic, and stocks remained above the 60,000-ton level, with supply and demand logic on the short side. In addition, related products ethylene glycol trend is weak, forming a certain suppression of diethylene glycol. Diethylene glycol is moving cautiously with multiple factors pulling against each other and prices are stable and small.

　　Shipping schedule shows that the end of this month, early next month, the port to the large number of ships, Saudi Arabia and Taiwan direction of goods totaled 14,000 tons, in addition to the superposition of other small ships, combined with the Qingming Festival before the delivery is expected to usher in the short term to warehouse inflection point is difficult.

　　In addition, due to efficiency problems in March, several sets of petroleum-based glycol device parking volume, April involves the reduction of negative device capacity volume is large, glycol start load is expected to further decline, but feedback to the supply data changes still need to wait.

　　From a comprehensive point of view, although international oil prices continue to strengthen, low valuation of ethylene glycol is more supportive, but because of the poor performance of the demand side, the lack of chase up drive. In addition, the market sentiment is very unstable as there are many peripheral disturbances and the glycol market will remain volatile in the near future.

　　International crude oil may remain high for some time, the cost side of diethylene glycol support, despite the factors that determine the trend of diethylene glycol still depends on supply and demand. Short-term view of the market within the substantial good yet to be clear, diethylene glycol oscillation pattern to maintain, but to be supply and demand pattern open, diethylene glycol trend or again return to 5200 CNY/ton position.