Stable operation of ethylene glycol in November

According to data from Business Society, on November 30th, the average price of domestic oil to ethylene glycol was 4100 yuan/ton, a decrease of 0.73% from the beginning of the month. Prices in various regions are as follows:

The price range for spot goods executed by mainstream manufacturers in East China is between 3950-4250 yuan/ton; The spot price of ethylene glycol in the South China market is 4000 yuan/ton, while the mainstream spot manufacturers in Central China have a price range of 4000 yuan/ton for external execution; The mainstream manufacturers in North China offer a spot price of 4250 yuan/ton to the outside world.

On November 29th, the landed price of ethylene glycol in China was 477 US dollars/ton; The CIF price in Southeast Asia is $485 per ton.

Ethylene glycol fundamentals

Downstream demand

The operating load of downstream polyester is relatively stable. On November 27th, the polyester operating rate was 88.72%, and the polyester factory load remained around 88%. On the terminal side, the operating load of the weaving machine is 85%, and the operating load of the elastic weaving machine is 91%. Both have increased compared to the previous period, mainly due to weather factors, which have led to an increase in demand for cold and warm orders.

High port inventory

As of November 27, 2023, the total spot inventory of ethylene glycol in the main port of East China was 1.1476 million tons, which is 1.0548 million tons higher than the total spot inventory of ethylene glycol in the main port of East China on October 23, an increase of 92800 tons. The port inventory is still relatively high.

Future market forecast

At the end of the month, market sentiment began to improve, partly due to news of the shutdown of North American facilities, and also due to the stabilization of oil prices, which began to rebound, and the strengthening of cost support expectations. However, the reality of ethylene glycol supply and demand is loose, with high inventory, which suppresses the upward space for prices. Fortunately, the current price is low, and it is expected that ethylene glycol prices will maintain a strong trend of bottoming out in the short term. In December, ethylene glycol prices are expected to slightly rebound.