Diethylene Glycol Market Value Affected Amid Uncertainty in Global
- 05-Jul-2022 3:25 PM
- Journalist: Patrick Knight
Nanjing, China: The impact of the global crisis like volatile crude oil value, rising inflation, and the US-China trade war aids in the upward rally in Diethylene Glycol. Increasing raw material costs also supports this hike in price trajectory for the product, as demand for the raw material ethylene faced competition from polymer. Thus, to justify the reasons mentioned above, the ChemAnalyst database also suggests an increment of 3% in the last week.
Recently, demand from downstream industries like antifreeze, brake fluids, cosmetics, lubricants, and plastic products increased. The relaxation of lockdown measures across China improved the production in downstream markets, enhancing the domestic market sentiments. Meanwhile, China's raw material Mono ethylene Glycol supply looks to be tighter for July amid a Sinopec Shanghai Petrochemical plant turnarounds in the last weeks, which has not yet resumed properly. Demand has also been firmed, particularly from small and mid-size enterprises in the Tianjin region, in line with volatile oil prices.
These days, the unstable trend of international Crude oil has brought some concern to the market of Petrochemical-derived products. The oil market faces tight supply amid lowering OPEC output as OPEC struggles to meet its oil output as agreed earlier. Diethylene Glycol producers are cautious over their production as the market is heavily hit by the uncertainty arising in the global market. Furthermore, there were optimum inventories of diethylene glycol in the reservoir areas of Zhang jiangang.
In addition, both BASF-YPC, a joint venture between state-owned refiner Sinopec and German chemicals firm BASF, and Ningbo ZRCC Lyondell increased their rate for Diethylene Glycol. Sinopec Tianjin has also been revising its margins, foreseeing the robust offtakes from downstream sectors.
According to ChemAnalyst Database, "Diethylene Glycol market is expected to narrow in the coming weeks, but special attention must be paid to the changing Crude oil market value and shifting demand-supply dynamics."