The price of ethylene glycol first rose and then fell in July
In July, the price of ethylene glycol first rose and then fell, showing an inverted “V” trend. In the early stage, influenced by anti involution sentiment, the price of bulk commodities showed an upward trend, and the price of ethylene glycol steadily rose. This week, coal prices have fallen, and ethylene glycol prices have slightly decreased.
Negative factors of ethylene glycol in August
1. The Saudi installation has been restarted, and concerns about overseas supply have subsided. Although the current arrival and import data are relatively low during the same period, the turning point is approaching, and import arrivals will gradually rebound;
2. There has been a slight increase in the negative load of ethylene glycol plants both domestically and internationally, with strong expectations for a rebound in supply;
3. The traditional off-season for domestic demand (terminal demand) is from July to August, and the demand expectation for ethylene glycol is weak during the consumption off-season;
Positive factors for ethylene glycol in August
1. Short term MEG inventory is low, although there is an expectation of accumulated inventory, the overall situation from July to September is still at a low level and the supply and demand are relatively balanced;
Although the overall anti involution sentiment of the product has been interrupted recently, the trend atmosphere is still present.
Future expectations
Overall, it is expected that the price of ethylene glycol will experience weak fluctuations in August.