Ethylene oxide decreased by 400 yuan / ton last week and 500 yuan / ton again today, entering the downward channel. At present, the ex factory price of mainstream East China is 9100 yuan / ton.

Upstream, due to the suspension of procurement by large state-owned refineries due to rising oil prices, while independent refineries are subject to import quota restrictions, domestic oil imports fell to a three-year low in October. The high level of ethylene has loosened. The ethylene price in Northeast Asia fell by $30 / t last weekend, and the latest price was $1170 / T.

In the downstream, the terminal has serious resistance to the high price in the upstream. Each monomer manufacturer has tacitly accepted the weak market in the off-season market, the ex factory price has been reduced, and the market decline is common. Generally speaking, the operating rate of the infrastructure industry in the fourth quarter is the lowest in the whole year. With the advent of snow in winter, the infrastructure industry in the north will gradually enter a rest period, and there is limited room for improvement on the demand side.

In terms of ethylene oxide, the commissioning of Gulei petrochemical refining unit was successful, and the EO unit in Jiangsu silbang was restarted. At present, it operates at low load and the supply surface is gradually relaxed.

The cost side and demand side are both negative, and the downside risk is difficult to eliminate.