Introduction: Recent port arrivals have been concentrated, leading to inventory accumulation at major East China ports, and the situation of strong spot liquidity has improved. Downstream orders are weak, with most buyers purchasing on a demand basis. The absolute spot prices are relatively high, resulting in insufficient market buying interest and a decline in the market price center from previous highs.
During the week, the highest price of diethylene glycol in East China was 9,120 yuan/ton, and the lowest was 8,755 yuan/ton. The average weekly price in Zhangjiagang was 8,927 yuan/ton, a decrease of 1.66%. This week, the situation in the Middle East continued to deteriorate, and the persistent strength of international oil prices lifted overall commodity sentiment. However, several units have recently restarted, leading to a continuous increase in domestic supply. With concentrated port arrivals, main port inventories have accumulated, and the previously tight spot market liquidity has eased. Downstream demand support is insufficient, and resistance to high prices persists. The improved supply situation has dampened downstream procurement enthusiasm, causing domestic spot prices to decline with fluctuations this week, and actual transaction volumes were moderate.
In late July, port arrivals were concentrated, and the inventory at major East China ports accumulated to 7,600 tons, an increase of 4,000 tons from the previous week. Among them, Zhangjiagang Changjiang International held 4,900 tons, and Fubao held 2,700 tons. From July 23 to July 29, the total shipment volume from the Changjiang International and Fubao warehouses at the main East China port was 2,143 tons, with an average daily shipment of approximately 306 tons. Additionally, with several domestic units restarting recently, the overall tight supply-demand balance in China has improved.
In the short term, Shenghong Refining & Chemical is expected to restart in mid-August, which could further increase domestic supply. Next week, port arrivals are still expected to be relatively high, with continued inventory accumulation anticipated at ports. Downstream orders remain lukewarm. The absolute price of diethylene glycol is high, making price transmission along the supply chain difficult. Coupled with price easing due to increased supply, downstream procurement enthusiasm is hindered. In the short term, the East China diethylene glycol market is likely to continue facing pressure.
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