Business Club September 13 News Since August, the market's volume of amplification, the diethylene glycol prices out of a wave of strong rally. In September, diethylene glycol prices continued to rise, reaching 9300 yuan/ton, a record high since 2010. It is estimated that there is still room for a slight increase in the price of diethylene glycol in the near future.
From the analysis of raw material costs, diethylene glycol is the main by-product in the production of ethylene glycol. The main raw material for ethylene glycol production is ethylene. Therefore, the level of ethylene prices determines the trend of diethylene glycol prices to a certain extent. In January this year, driven by the sharp rise in international crude oil prices, international ethylene prices rose sharply to 1,395 U.S. dollars per ton. However, after entering in February, the price of ethylene dropped sharply. In July, the price dropped to a low of $808/ton. Ethylene prices rebounded sharply after August. Under the circumstance that domestic diethylene glycol producers' costs have risen sharply, in order to circumvent the market risks, diethylene glycol producers have raised the sales price in the domestic market, and resolved the increase in production costs. And bring pressure.
From the perspective of downstream demand, the recent downward pressure on diethylene glycol producers to release inventory has been clearly released, highlighting the strong growth in total demand. As producers and marketers expect the diethylene glycol market to still have room for growth, it has resulted in A quick rebound in prices. Diethylene glycol is mainly used for the production of unsaturated polyester resins, aromatic hydrocarbon extractants, plasticizers, disinfectants, and glass fibers. Due to the adjustment of the country’s economic structure and the shift from traditional industries to strategic emerging industries, under the background of national regulation, new diethylene glycol downstream products have attracted the attention of market participants, and the intensity of speculation has been significantly enhanced over the previous period.
Due to the recent increase in the demand for the diethylene glycol market and the reduction in inventory, the imbalance in supply exceeds demand has been improved to a certain extent, leaving some room for market speculation. Therefore, there is still room for a slight increase in recent diethylene glycol prices.