In recent times, crude oil has continued to rise, terminal inventories are running at low levels, and coupled with the general rise in peripheral commodities and other factors, ethylene glycol has continued to hit new highs in the new year.
On November 30, the Organization of the Petroleum Exporting Countries (OPEC) finally reached an agreement to reduce production. On the same day, WTI rose by $4.2 to $49.4, driven by news of production restrictions, the largest single-day increase this year. In the following few trading days, the production reduction agreement continued to ferment, and international crude oil has completed four consecutive gains. As of the close of December 5, WTI had climbed to a high of $51.79 per barrel.
Jin Lianchuang’s recent tracking data shows that the downstream polyester operating rate remains at a high level of about 80%. Recently, the terminal shipments have been smooth. The daily average in the mainstream reservoir area this week Shipments are around 9,000 tons, and terminal inventories continue to remain low. Under the guidance of the sentiment of “buy up but not down”, downstream production and sales are even more popular. Polyester staple fiber has exploded collectively. The recent average daily production and sales are around 100-150%. Downstream inventories have been effectively released, which has a significant supporting effect on the market.
Compared with previous years, East China terminal inventory this year has been at a relatively low level. The depreciation of the RMB is closely related to the instability of the domestic economic environment. In mid-October, the China Securities Regulatory Commission approved the application for listing of ethylene glycol futures on the Dalian Commodity Exchange, exacerbating the continuation of this phenomenon. The tight short-term ethylene glycol spot volume may continue.
The funding surface at the end of the year and the decline in demand for deposit. Although there are expectations of a decline, there is little expectation of a sharp drop in operating rates. Due to the dual effects of supply and demand and the external environment, it is difficult for ethylene glycol to experience last year’s sharp decline before the end of the year.
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