The price of ethylene oxide moves down after coming back on New Year’s Day

According to the data of the business cooperative, the average price of ethylene oxide in the domestic spot market on January 4, 2023 was 6300 yuan/ton, unchanged from yesterday, and 500 yuan/ton lower than the average price of 6800 yuan/ton in the spot market before New Year’s Day.

At present, the listing price of ethylene oxide in all regions in China has been lowered by 300-500 yuan/ton compared with that before New Year’s Day. The factory listing price of mainstream markets in all regions is as follows:

The external implementation of ethylene oxide market in East China is 6300 yuan/ton; Ethylene oxide market in South China is 6300 yuan/ton; The listing price of ethylene oxide market in central China is 6300 yuan/ton; The listed price of ethylene oxide in North China is 6300 yuan/ton, and that of some manufacturers in Northeast China is 6300 yuan/ton.

Overview of ethylene oxide industry chain

On the whole, weak downstream demand is the main reason for the weak and stable price of ethylene oxide.

Fundamentals Overview

On the supply side, ethylene oxide production capacity is relatively stable, the price of raw ethylene changes little, and support is limited. On the demand side, the main downstream polycarboxylic acid water reducer monomer is facing the long holiday of the Spring Festival. The operating rate of the terminal real estate is under pressure. The construction conditions of the terminal terminal buildings are insufficient, and the demand is expected to weaken significantly. At present, the inventory of polycarboxylic acid water reducer monomer enterprises has accumulated to a medium high level, the enthusiasm of enterprises for production has declined, and the purchasing atmosphere for ethylene oxide is weak. In the early stage, when the fundamentals of ethylene oxide were weak, the ethylene oxide manufacturers and traders holding the goods had been holding prices for a long time. After New Year’s Day, the willingness to reduce prices and ship goods was enhanced. As the Spring Festival approached, the willingness to realize increased.

Future market forecast

The price of raw ethylene is relatively stable, the terminal demand is weak, and the downstream demand is restrained. The market of polycarboxylic acid water reducer monomer in the main downstream is facing the Spring Festival holiday. The operating rate of the terminal real estate is under downward pressure, and the demand for ethylene oxide is expected to weaken. In the early stage, the price of ethylene oxide has been trading sideways for a long time, and the supply and demand fundamentals have not improved. When we come back after the New Year’s Day, it is expected that the price of ethylene oxide will remain weak and stable in the short term after moving down.