On December 10th, the diethylene glycol market continued to decline weakly, with spot prices in East China closing at 3040 yuan/ton, -5 yuan/ton; South China closed at 3200 yuan/ton, -35 yuan/ton.
Fundamental analysis
Supply: During this period (December 9-15), Zhangjiagang is expected to receive 11100 tons of cargo by ship, with a large total cargo volume. From the distribution of shipping schedules and the number of single ships, the main port inventory is expected to narrow first and then increase during the week. As of December 9th, Fubao’s inventory was 11900 tons, and Changjiang announced its inventory every Monday.
Demand: There has been no improvement in terminal demand, with an average of 37% of domestic unsaturated resin factories operating at full capacity, unchanged from last week, putting pressure on traders to ship. On December 9th, the total amount of ethylene glycol shipped from the two storage areas in Zhangjiagang was 1429 tons, a decrease of 229 tons from the previous day’s shipment as of now.
Cost: Some oil fields in Iraq have resumed production, and the United States is still pushing for Russia Ukraine peace talks. Coupled with the continued OPEC+production increase atmosphere, international oil prices have fallen, and cost support has weakened.
Market expectation: International crude oil is operating weakly, and fundamentals remain weak. The price of diethylene glycol is still prone to decline but difficult to rise due to the impact of product structure, and the mentality of industry players is at the bottom and difficult to improve. In the short term, the market may show a bottom adjustment intention, but in the medium and long term, new lows cannot be ruled out.