On February 3rd, the diethylene glycol market remained stagnant and consolidated, with spot prices in East China closing at 3280 yuan/ton,+10 yuan/ton; South China closed at 3400 yuan/ton, temporarily stable. Local imports continue to be delayed, spot prices remain tight, and there are many external instability factors.
Fundamental analysis:
Supply: As of February 2nd, the inventory of diethylene glycol at ports in East China was 45700 tons, an increase of 15900 tons from the previous cycle. This week (February 3-9), Zhangjiagang Diethylene Glycol is expected to arrive at a ship of 4300 tons, with a continuous decrease in expected port arrivals. However, as the Spring Festival holiday approaches, port shipments are relatively reduced, and it is expected that there will be little change in inventory at the main ports in East China.
Demand: Terminal demand is average, with an average of 36% of domestic unsaturated resin factories operating this week, a decrease of 2.0% from last week. Traders are under pressure to ship. On February 2nd, the total amount of shipments from the two storage areas in Zhangjiagang was 1187 tons, a decrease of 315 tons from the previous day.
Cost: There are temporary signs of easing in the US Iran situation, weakening potential supply risks, coupled with the recent strengthening of the US dollar and the decline in international oil prices, resulting in a decrease in cost support.
Market expectations: There will be little change in the supply side, and downstream industries are gradually entering the Spring Festival holiday. Demand support is insufficient, and the geopolitical situation is easing. International oil prices have dropped sharply, and the festive atmosphere is becoming increasingly strong. Market participation enthusiasm is not high, and the short-term ethylene glycol market will maintain a weak and volatile pattern. Some operators have weak willingness to ship, and downstream demand procurement is the main focus.