Ethylene oxide has been struggling to keep the cost line down

Ethylene oxide continued to fall, falling 500 yuan/ton on June 14 and 600 yuan/ton on June 20, falling more than 10%. The slide to the fast to the fierce, downstream panic state of mind difficult to come loose. The main reasons for this price adjustment were analyzed as follows: First, the maintenance equipment started operation one after another, and the supply in East China, the main production area, increased significantly, and the downstream digestion capacity was limited; Secondly, ethylene oxide has maintained a small rise for ten consecutive months. When the demand is passive and needs to be adjusted, the factory is in place at one step, in order to dispel the spread of market panic. Again, ethylene glycol trend is not good, weakened support point; In the mood to buy up not to buy down, weak trading atmosphere, resulting in blocked shipments.

Ethylene oxide has fallen more than 10 percent this month and some players remain bearish on the market in the near term. Professionals analyze the current basic situation, ethylene: according to the current ethylene price of us $1375 / ton, accounting for the external production of ethylene oxide enterprises have been in a loss situation or the edge of the cost line, the enterprise is on the edge of loss, in the short term, the space for further exploration is limited; In addition, some units have maintenance plans, sierbang, Taixing Jinyan and Liaoning Beihua are still in maintenance or will soon enter the maintenance period, so the ample supply and demand situation of ethylene oxide will be improved.

On the demand side, the current polycarboxylic acid water-reducing agent monomer performance is poor, the low-end market supply frequency, resulting in poor transaction situation; Fruit bird shipping resistance still exists. Ethanolamine market: in the face of the preliminary results of anti-dumping and the future sierbang will be overhaul, so the low-end supply may be convergence, maintain a weak shock situation. Table live market tepid in the near future, weak slide, passive demand, follow up. The three main downstream support points of ethylene oxide are stable and weak, ethylene oxide still needs to rely on its own supply to adjust the market mentality.

In the short term, due to high ethylene, ethylene oxide is struggling at the edge of the cost line, so further downside space may be limited; And some factories have been repaired or there are still maintenance devices in operation, the subsequent supply may be relieved; In the long term, in the second half of the year, the overhaul tide of ethylene oxide has passed. As a resource-based product, supply and demand is the key to directly affect the price, so in the situation of abundant supply, the subsequent market is easy to fall but difficult to rise; Pay attention to the supply situation of the factory and the follow-up efforts of the downstream. The balance of supply and demand is the key to adjust the price.