The price of glycol may weaken due to the market downturn and sufficient supply

According to foreign media Singapore on March 6, domestic glycol (MEG) prices in China are likely to soften in the near future due to the dual impact of continued sluggish demand and abundant supply. According to the data, on March 5, the price of MEG spot warehouse in the Eastern market of China was raised to 7500-7670 CNY/ton, which has fallen by 425 CNY/ton compared with the price on February 28. The largest derivative polyester Market downstream of MEG is still recovering, and many polyester producers have ample supply of MEG contract goods, so they are reluctant to purchase spot MEG. In addition, China's transportation has not fully recovered after the Lunar New Year holiday. Although February is three days less than January, stimulated by the considerable profits, China's domestic MEG production may have increased in February, and the actual data in February will be released in the next few days. Most of the plants are expected to run normally in March.

MEG inventories at major ports in eastern China are increasing due to higher plant operating rates but still sluggish market demand. MEG inventories at major ports in eastern China reached 665000 tons, an increase of more than 70000 tons over last week. After the Spring Festival holiday, the total MEG inventory of China's major ports increased by more than 190000 tons. According to some market participants, between 170000 and 180000 tons of MEG imports will arrive in the Chinese market in the week ending March 9. Many shippers want to sell off the shelf goods, but buyers have taken a wait-and-see attitude and expect prices to fall further. However, some market participants expect prices to bottom soon and turn to a more optimistic trend in the second quarter, when some domestic units will be shut down for maintenance.