In recent years, with the rapid development of China's polyester industry, a huge gap in the ethylene glycol market and good prospects for development have led to an upsurge in the construction of a glycol plant in China. It is expected that the total ethylene glycol production capacity in China will reach approximately 4.2 million tons in 2010, an increase of 54.98% over 2007. In the case of increased pressure on ethylene glycol producers' inventories, the market expects that ethylene glycol will still be subject to concerns from the economic fundamentals, the reduction in demand, and the decline in price valuations, ethylene glycol prices have rapidly declined. At the same time, since the cumulative drop in ethylene glycol from May to June was as high as 29.6%, manufacturers and distributors have been on the verge of losses. In late June, with some manufacturers' inventories falling and the willingness to sell pressure apparently falling, prices showed signs of stabilization. However, from the macro point of view, the ethylene glycol market pressure has not been lifted. The decrease in textile exports and the structural adjustment in the textile industry, and the impact of hot weather on the price trend of ethylene glycol, will be further manifested in the third quarter. The demand of the textile industry's regulation and the secondary bottoming out of peripheral economies may mean that the lower profitability of the ethylene glycol, polyester, and textile industries will continue. In the absence of market funding, and market players are more cautious, ethylene glycol still lacks the momentum to increase prices in the short term. However, considering that inflationary pressures still exist and the policy control turnaround is difficult to achieve in the short term, it is expected that the price of ethylene glycol in the third quarter will be in a steady decline and a decrease, which will be in 5200. ~ 6,000 yuan / ton fluctuations, not far from the bottom of the price. U & C Auto Parts Co., Ltd. , http://www.njradiator.com
Emerging chemical industry in the rise of Xiantao
Since the beginning of this spring, the ethylene glycol market price has been continuously falling, especially in May and early June. However, after the middle of June, the ethylene glycol market price has gradually stopped falling, and the decline rate has become smaller, and in June, There was a relatively defensive trend in the late period. This may mean that glycol has approached the phasic bottom.