Weak stability of ethylene oxide prices in June
| Gamma Polyglutamic acid food grade |
According to the data of the business society, the average price of ethylene oxide in the domestic Spot market will be 6000 yuan/ton on June 28, 2023, which will be the same as that at the beginning of the month; Compared to the beginning of the year, the price was 6800 yuan/ton, a decrease of 11.76%.
Overview of ethylene oxide industry chain
The terminal demand is lower than expected, and the price center of the main downstream polycarboxylate water reducing agent monomer has shifted downward. The production enthusiasm of polycarboxylate water reducing agent monomer enterprises is not high, and the demand for ethylene oxide is weakened.
Market Interpretation
At the end of last month, large factories lowered their prices by 500 yuan/ton. In June, epoxy ethane basically maintained a horizontal operation of 6000 yuan/ton. At present, prices are relatively low, and some manufacturers have hit the cost line, facing increasing pressure to lose money. From the supply side perspective, in June, some ethylene oxide factories had passive production reductions or proactive load reduction to balance enterprise benefits. In addition, some production factories switched to producing ethylene glycol or adjusted their own usage ratio to alleviate production and sales pressure. On the demand side, the main downstream polycarboxylate water reducing agent still has significant losses, and the factory’s production enthusiasm is not high. On the other hand, downstream has entered a seasonal off-season, with limited consumption volume, and overall demand for ethylene oxide is not strong.
| Gamma Polyglutamic Acid |
Overall, the supply and demand of ethylene oxide are weak, and the price is horizontally stagnant at a low level. From the perspective of cost, the domestic mainstream processes are divided into Naphtha, ethane/mixed alkane, external ethylene production, MTO route, etc; Among them, the Naphtha route accounts for about 49%, followed by ethane and ethylene production. The cost of ethylene production is relatively favorable, and the cost pressure on crude oil routes is relatively high.
In the short term, the cost support for ethylene oxide is weak, and the supply and demand pattern is also difficult to improve. It is expected that the price will continue the current trend, with weak fluctuations as the main trend.
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