Introduction
The ethylene glycol market has shown a trend recently, and this article will delve into the reasons behind it and analyze the possible future direction of the market.
Analysis of the main causes
Device reboot impact
The restart of ethane-to-ethylene glycol plants has put pressure on the market.
Compared with the destocking from December last year to January this year, ethylene glycol inventories accumulated in February, and the magnitude was lower than expected.
Market operation logic
After the pre-holiday short order**, after the holiday, with the margin reduction, investors increased their positions to short.
The high inventory and loss status of the polyester industry became a reason for short operations.
Market concerns about a continued rebound and inventory build-up.
Concerns on the cost side, especially the weakening of naphtha.
Coal market dynamics
Shanxi Province asked Lu'an Group to reduce production, which affected coal.
Heavy snowfall in the north has affected coal shipments, leading to a recent strengthening in coal prices.
End outlook
It is expected that the domestic start in March will be lower than that in February, and the resumption of overseas equipment will be delayed, which will reduce the pressure.
Conclusions and Recommendations
There is an opportunity to short ethylene glycol in the current market, but not now.
It is expected that the loss will be restored to within -500, and the current loss is between -400 and -500.
In the short term, it is still more treated.
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Important: This report strives to be objective and unbiased in its contents, citations and data. Reliable, accurate and complete to the best of our ability, but not the accuracy and completeness of the information stated in the reportThe information provided in this report is for reference only and is not used as the basis for investment decisions。Investment is risky, and you need to be cautious when entering the market.