Ethylene oxide fell during the week, with a general adjustment of 500 yuan / ton. At present, the mainstream price in the market is 7050 yuan / ton, and the ex factory price in Central China is 7150 yuan / ton.

Upstream, international oil prices fell during the week because investors were concerned about the prospect of a substantial interest rate hike in the United States later this month, which would curb inflation and weaken crude oil demand. The spot valuation of light distillate oil in Asia continued to fall, following the decline of international crude oil futures. The spot valuation of naphtha fell to $79.99/barrel, and the spot price difference rose to +1.99/barrel. Up to now, the outer disc price of ethylene in Northeast Asia is $880 / ton, down $10 / ton from the price of the previous trading day; The external price of ethylene in Southeast Asia is 1030 US dollars / ton, Luxi Chemical ethylene is quoted at 7350 yuan / ton today, and Jinshan Lianmao ethylene is quoted at 7500 yuan / ton today, which is flat compared with the previous trading day. Measured by the current external price, ethylene oxide is close to the cost line. As of the close of July 8, the spot price difference between Northeast Asia ethylene and CFR Japanese naphtha was $112.5 / ton, and the ethylene cracking plant using naphtha as raw material continues to suffer losses.

The fluctuation of ethylene oxide supply side is limited. Due to the drag of demand side, the operating load remains low, and the ethylene glycol market has not improved. At present, the co production unit is mainly EO, which is difficult to adjust the ethylene oxide supply side.

Downstream monomer manufacturers have been waiting for the trend of ethylene oxide for a long time, and the price has been lowered again. The progress of infrastructure construction has been hampered by extreme weather, the performance of cement water reducer is poor, and the market has fallen during the week. Terminal enterprises mainly follow up with rigid needs, and the support of demand side is weak.

Forecast: after digesting the decline, the ethylene market is expected to bottom, and ethylene oxide will fluctuate around the cost line, with limited room for decline.