Ease in China’s Lockdown: To Improve Market for Diethylene Glycol
- 31-May-2022 6:06 PM
- Journalist: Gabreilla Figueroa
Qingdao, China: The improved demand from the downstream sector has lifted the market sentiment for Diethylene Glycol, as has the easing market activity post-Covid-19 restrictions, which has expelled the product's trading activity. ChemAnalyst also estimates a 1% rise in the Diethylene Glycol pricing trend compared to the previous week of May.
The strengthening demand for plastic materials like polyurethane, used for insulation of refrigerators and as a coating in the automobile industry, gained consumers' attention towards this product. Later, it is clear that the market in China have slowly started functioning, thereafter smoothening restrictions on the supply of the product have restored the market for Diethylene Glycol, whereas downstream industries have just started operating. Meanwhile, fluctuating crude oil prices do not seem to affect the feedstock Ethylene Oxide market, as it is stable. China and India are most populated country which is still developing. So, due to its regional development, the demand for agrochemicals, paints & coatings, and personal care businesses are likely to experience significant development in these regions.
A source from the production units attributed that, " Inner Mongolia Yigao Coal Chemical resumes production of its Mono-Ethylene Glycol unit." As per the significant manufacturing units like Reliance Industries Limited, SABIC, Dow, Huntsman International LLC, and Shell Plc, demand is sporadic and is anticipated to gain momentum from the automotive sector, which remained shut down on account of lockdown. Meanwhile, ChemAnalyst also projected an uptrend in the price of Diethylene glycol in the Asia-Pacific region.
According to ChemAnalyst Review," Logistics issue and hindered transportation may impact the Diethylene Glycol market. Increased offtake from downstream users like Polyethylene Terephthalate resins and textile industry are the major factors to drive the market. Thus, the price of Diethylene Glycol in the future is anticipated to fluctuate due to changing atmosphere of supply and demand.