Mono-Ethylene Glycol Prices Show Mixed Market Sentiments Globally
- 01-Jul-2022 11:48 AM
- Journalist: Timothy Greene
Hamburg, Germany: Mono-Ethylene Glycol prices for the last few weeks continued downward, easing Feedstock Ethylene and Naphtha value, weakening demand in Europe and India. Today, China witnesses a hike in Mono-Ethylene Glycol price as the market for Crude oil soared again, owing to several reasons like supply tightness, reducing inventories, and a stronger dollar rate. Feedstock Ethylene oxide has been stable to low in China. Meanwhile, it is evident that China, the major importer of Mono-Ethylene Glycol and ethylene oxide, has gained momentum in its demand and trading activity.
In India, Mono-Ethylene Glycol prices drop by 3 rupees per kg closing the last week of June on weak demand and surplus inventories. Reliance has ramped up the Mono-Ethylene Glycol plant operating rate by around 15-20% to full capacity. With the supply recovery in the Indian local market, import demand has also weakened. In addition, downstream demand for polyester and Polyethylene Terephthalate bottles declined. However, with the advent of the traditional off-season, the textile terminal demand has also been weak.
In Contrast, European Mono-Ethylene Glycol spot prices were stable-to-soft as demand had been relatively flat for most of the week.
Since the ease of Covid restrictions in China, commodities prices have dropped and normalized to their prices before the global crisis. Cargo shipments to China have improved in June, and the supply of Saudi Arabia's cargoes to China has increased. Therefore, with efficient operating rates of units in Saudi Arabia and China, Petrochemical-derived prices have slumped. Still, the Mono-Ethylene Glycol price ascended today owing to the G7 summit, which suppressed Russia's oil exports alongside falling U.S oil inventories. Therefore, the international oil prices rose due to supply tightness and low oil production by Saudi Arabia and the United Arab Emirates.
ChemAnalyst Prediction states, "The price for Mono-Ethylene Glycol is slowly dripping down, but it is unlikely to predict whether the market will stay at average level; due to uncertainty arising from Global crisis. Furthermore, political unrest in Ecuador and Libya could also tighten the supply of crude oil, affecting its upstream Ethylene.