Shouchuang Futures: Cost disturbances, ethylene glycol futures fluctuate and adjust

In the spot market, the price of ethylene glycol in East China is 5,346 yuan/ton for self-pickup, down 124 yuan/ton compared to the previous trading day.
In terms of supply, last week, the total operating rate of domestic ethylene glycol decreased by 0.3 percentage points week-on-week, with coal-based ethylene glycol operating rate dropping by 2.3 percentage points. The inventory of ethylene glycol at the main port in East China decreased by 12,000 tons week-on-week, with multiple coal-based ethylene glycol units planning to either shut down or reduce production. On the overseas front, some units in Iran have stopped production or suspended exports, and Saudi units are operating at low levels, with expectations of a significant decline in ethylene glycol imports in March.
In terms of demand, downstream polyester production and terminal weaving operations are gradually recovering. It is expected that from March to May, there will be a cumulative reduction of 550,000 tons of ethylene glycol inventory.
In summary, maintenance of domestic and overseas units is still ongoing, supply is tightening, and import expectations are declining. Ethylene glycol will continue to reduce inventory from March to May. However, geopolitical factors are causing sharp fluctuations in oil prices, and the polyester chain is undergoing overall adjustments. Attention should be paid to changes in domestic and overseas unit operations and cost fluctuations. (Founder Futures)