The 800,000 tons / year ethylene glycol plant is one of Sinopec Zhenhai Base (Phase 1) 15 million tons / year refining 1.2 million tons / year ethylene project (ethylene part) chemical plant. This project is to build a new set of EO / EG device. The device uses the Shell Master EO / EG process package provided by Shell. The process technology is ethylene oxidation to generate ethylene oxide.
Analysis of supply and demand in the glycol market:
The main logic of ethylene glycol being so weak is overcapacity. Starting in 2018, China's coal-based ethylene glycol began to focus on driving, breaking the balance between supply and demand of ethylene glycol. In early 2020, Zhejiang Petroleum and Hengli Petrochemical, large-scale petroleum-based installations With a total capacity of 2.55 million tons in the normal supply market, China's total ethylene glycol capacity reached nearly 14 million tons, an increase of 50% compared to the beginning of 2018.
Since 2019, ethylene glycol has started a downward trend. It has always been in the market for air-conditioned products. As a result, the price base in 2020 is not high. This time, a macro bearish situation has occurred, and ethylene glycol has not narrowed its decline due to the low price base. New lows in the past 20 years have been constantly refreshed.
The emergence of the epidemic has had a significant impact on the world economy. As ethylene glycol is an important raw material for polyester, the demand for terminal clothing has a greater degree of correlation with economic conditions. Therefore, more than 90% of the demand comes from polyester For glycol products, the impact is self-evident. When supply increases and demand decreases, the contradiction between supply and demand becomes more prominent. Glycol has become a short allocation in a downward trend. Therefore, the overall market performance is weak when rebounding, and leading when falling. status.
