The price of ethylene oxide rebounded from the bottom in the month. The ex factory price at the beginning of the month was 6550 yuan / ton. The lowest point in the month fell to 6300 yuan / ton. The price gradually increased in the middle and late ten days. The latest price is 6700 yuan / ton.

From the perspective of cost, the demand for petrochemical products has dropped significantly. In the monthly report of the International Energy Agency, the demand for naphtha in Asia in 2022 will drop by 70000 barrels per day. The profit margin of naphtha ethylene cracking unit is not good. The manufacturer has reduced the operating rate to reduce losses. In August, the capacity was about 75% – 80%, down more than 5% from the operating rate in July. The price of ethylene in Northeast Asia regained its lost ground at the end of the month, once as low as 820 US dollars per ton in the middle of the month. Based on the current external price, the theoretical loss of ethylene oxide is expected to be around 490 yuan per ton.

From the demand side, the high temperature weather continued this month, the infrastructure and real estate industry was depressed, and the domestic epidemic was sporadic. Under the influence of macroeconomic pressure, the demand for monomer remained weak. The temperature dropped in the last few days at the end of the month, and the purchasing sentiment in the downstream has heated up, which just needs to be followed up step by step.

From the perspective of supply, ethylene oxide is still in a situation where it is difficult to obtain a single supply, and manufacturers mainly supply contracts. The 100000 ton EO unit of Gulei Petrochemical is scheduled to be overhauled for about 20 days in mid September. Maoming and Yangzi Petrochemical have not yet defined the start-up time.

The recent rise in the market is mainly caused by the tightening of the supply side. The supply side has a slight strength. In addition, the market negotiation focus has risen due to the proximity of the golden nine silver ten.