The Offers for Neo-Pentyl Glycol Soared Due to the Lower Operating Rates at the Production Facilities
- 15-Feb-2022 3:44 PM
- Journalist: Xiang Hong
The market activities resumed after a week-long Lunar New Year holidays, in 07th February 2022, the Chinese market opened witnessed anticipated strength and the commodity futures greater gains on the very first day of trading. The market participants informed that the offers for more than 20 chemicals witnessed a substantial surge, amongst them LPG hiked by 8.46%, Fuel Oil with lower Sulphur content, Asphalt rose witnessed a growth above 5%, and major polymers like PVC, PE, PP, Soda Ash, and Crude Oil surged by more than 4%. Whereas Styrene, Ethylene Glycol, Methanol, and several other commodities witnessed a gradual hike in future contracts.
The surge in the offers of Ethylene Glycol provided adequate cost support in the production of Neo-Pentyl Glycol. Whereas, the lower operating rates of several production facilities widened the supply-demand gap in the Chinese domestic market. Whereas, earlier in January Xilingol Sunite Alkali Industry Co. Ltd. announced the termination of the Ethylene Glycol project regarding the shift in relevant policies, regulations, environmental and energy consumption regulations led to incapable to set up the plant. In addition, the antidumping duties on the feedstock Ethylene Glycol from the USA curtailed the imported volumes from the overseas market which further coupled with the rebound in the market sentiments. Therefore, the combined impact uplifted the market sentiments and offers for Neo-Pentyl Glycol in the Chinese domestic market.
As a ripple effect, the Neo-Pentyl Glycol prices soared by a significant margin in the third week of February, and several market experts were anticipating that the presence of the current sentiments is likely to persist in the Chinese domestic market.