Last week, the domestic ethylene glycol market started an upward trend. From the perspective of the supply side, overseas installations have been intensively overhauled, and domestic new installations have been put into production, while the demand side has been relatively stable, and the load has picked up partially. It is expected that the ethylene glycol price center will show an upward trend.
PX starts to rise slightly
Last week, the external crude oil showed an upward trend as a whole. Naphtha rose to US$416.5/ton and fell to US$405/ton. The spread between naphtha and cloth oil widened to US$84 last week and narrowed again to around US$74 last Friday; the price difference between naphtha and WTI crude oil had a similar trend, widening to US$99 last week and narrowing to US$99 last Friday. Below $90. The PX price fell after rising to 553 US dollars and fell to 535 US dollars last Friday. PX Asia's operating rate and PX my country's operating rate increased slightly from the previous month.
The start of installations has picked up significantly. As of August 27, the overall domestic ethylene glycol operating load was 59.1%, of which coal-to-ethylene glycol operating load was 39.5%. In the United States, an MEG device with an annual output of 700,000 tons was extended due to the impact of the hurricane. It is estimated that the parking time will be 2-4 weeks. The device will be shut down on the morning of August 26. It was originally expected to park until the weekend. Now if it is parked for 2-4 weeks, there are also 340,000 and 280,000 tons of installations that may be restarted due to the hurricane. The MEG imported from North America basically accounts for 20%. North America’s total production capacity is 3.36 million tons, and 700,000 tons of installations basically account for 20.8%. The impact is about 4%. The impact lasts for half a month to one month. The month will be reflected in the arrival volume.
Terminal demand can be expected
The latest inventory data shows that ethylene glycol port inventory is basically stable month-on-month. As of August 24, the MEG port inventory in East China's main port area was about 1.454 million tons, an increase of 10 thousand tons from the previous month. Ship report data shows that from August 24 to August 30, the four major ports are expected to arrive at a total of 231,000 tons, which is a neutral level. Shipments from Zhangjiagang's mainstream warehouses have rebounded significantly recently, and the port inventory pressure has eased. The difference between actual arrivals and planned arrivals has narrowed, and the pressure on port detention has eased. It is expected that the port may destock again.
As of last Friday, the polyester load has increased to 91.5%. Among them, the polyester filament load has stabilized at 75.1%, the polyester bottle flake load has rebounded slightly to 80.5%, and the direct spinning polyester short operating rate has remained stable at 95.1%. Last week, the operating rate of looms and texturing machines in Jiangsu and Zhejiang rebounded. At present, the operating rates of looms and texturing are 74.9% and 78.9% respectively, and some home textile orders are relatively good. The peak season in the second half of the year is expected to be postponed and better than the first half of the year.
Source: Chemical Network
