News Report – May 8, 2024

Hainan Refining & Chemical (Hainan Refinery) has lowered its diethylene glycol (DEG) offer price by RMB 250/mt on May 8. The ex-works Hainan Refinery (self-pickup) price is set at RMB 7,000/mt, while the ex-works Dongguan (self-pickup) price is RMB 7,030/mt. The 800,000 mt/year ethylene glycol (EG) unit is operating at 80% capacity.

Chempricehub DEG Assessment – Bull/Bear Score: -1
The spot price support weakened after Hainan Refinery cut its DEG offer by RMB 250/mt on May 8. This constitutes a generally bearish factor for the DEG market.

Ethylene Glycol (EG) – Bull/Bear Score: 0
Hainan Refinery’s 800,000 mt/year EG unit remains at 80% operation, with no significant supply-side anomalies. On May 7, the main EG contract (2609) closed at RMB 4,851/mt, down RMB 190/mt from the previous trading day, with open interest decreasing by 17,146 lots. Short-term market sentiment is oscillating with a weak bias. The current news impact on the market is neutral.