The price of ethylene glycol rose in January
| PVA 1799 (PVA BF17) |
The price of ethylene glycol has risen this week. According to data from Business Society, as of January 26th, the average price of domestic oil to ethylene glycol was 4596.67 yuan/ton, an increase of 6.71% from the beginning of the month, and a weekly increase of 2.45%. The prices for each region are as follows:
The price range for spot goods executed by mainstream manufacturers in East China is between 4600-4700 yuan/ton; The spot price of ethylene glycol in the South China market is 4550 yuan/ton, and the price range for mainstream manufacturers in Central China’s spot market is 4550 yuan/ton; The mainstream manufacturers in North China offer a spot price of 4500 yuan/ton for external transactions.
The price of ethylene glycol has risen significantly since December 2023 due to the impact of overseas device news and continuous inventory depletion. Currently, the price has exceeded the highest level in 2023, with an increase of 11.21% compared to the low level on December 15.
The upward movement of ethylene glycol prices this week is mainly due to the continuous downward movement of inventory data and the improvement of supply and demand fundamentals.
Inventory removal within the week compared to the previous week
As of January 25, 2024, the inventory of ethylene glycol in the main port of East China was 836000 tons, which is 1.2255 million tons from the high inventory level (December 7, 2023), and has continued to decline unilaterally by 389500 tons. Looking at the week, on the 18th, the main port in East China had 93000 tons of ethylene glycol inventory and 94000 tons of destocking.
| PVA |
This week, domestic port inventory has decreased, on the one hand due to the expected decrease in overseas input caused by overseas device shutdowns and maintenance, as well as the impact of the Red Sea incident on domestic shipping; On the other hand, it is also due to the long sealing period of the main port during the week, resulting in limited unloading at the port.
Future expectations
The main variables currently affecting the price of ethylene glycol are the implementation of import volume reduction and whether the underlying cost support brought about by crude oil and coal prices will continue.
The inventory of ethylene glycol at the port has decreased, which is in line with the expectation of overseas supply contraction in the early stage, and the central price of ethylene glycol has shifted upwards. In the short term, the price of ethylene glycol tends to be strong.
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