Summary of Ethylene Oxide Prices in September
In September, the price of ethylene oxide increased. According to data from Business News Agency, as of September 11th, the average market price of ethylene oxide in China was 6600 yuan/ton; From a regional perspective, the average market price in North China is 6500 yuan/ton, East China is 6600 yuan/ton, Central China is 6600 yuan/ton, and South China is 6600 yuan/ton.
Overview of ethylene oxide industry chain
From August to September, the prices of the main downstream polycarboxylate water reducing agent monomers remained relatively stable, while the recent price increase of ethylene oxide was mainly driven by cost factors.
Previously, the price of ethylene oxide was relatively low, and some manufacturers hit the cost line, facing increasing pressure to lose money. The operating rate of manufacturers was relatively low, and some enterprises underwent equipment maintenance. In addition, some production factories may switch to producing ethylene glycol or adjust their own usage ratio to alleviate production and sales pressure. Overall, there are frequent malfunctions in the ethylene oxide plant, leading to a tightening of market supply. Since July, the cost side benefits brought by the raw material side and the macro benefits driven by the upward trend of crude oil prices in the energy and chemical sector have supported the price of ethylene oxide.
The price of ethylene oxide may continue to fluctuate strongly in September
In the short term, the cost support for ethylene oxide has strengthened, and with the transmission effect of upstream and downstream product prices, the price of ethylene oxide has improved. On the supply and demand side, under the increasing losses of ethylene oxide enterprises on the supply side, production enthusiasm is not high, external sales of enterprises are decreasing, and domestic supply is showing a tense situation. There is still room for the price of ethylene oxide to rise in the short term.