Yesterday, the factory price of ethylene oxide in China was generally raised by 500 yuan/ton. The current market analysis is as follows:
1. The reason for the frequent increase in the price of ethylene oxide: Cost push is the main reason for the frequent increase in the price of ethylene oxide. At present, the price of ethylene in Asia is $1210 per ton, and the production cost of ethylene oxide is 9000 yuan per ton. After this price increase, ethylene oxide production enterprises are still operating at a loss. Loss is an abnormal market behavior, and as long as there is a loss, an increase in commodity prices is inevitable.
2. The impact of market demand on the price of ethylene oxide: Currently, many enterprises have not started production normally, and market demand has not fully recovered. As the demand market gradually recovers, ethylene oxide will develop from losses to profits, and will be analyzed by comparing prices of basic raw materials (petroleum, fats, coal, methanol, ethylene). The future market demand changes will be the determining factor for the price adjustment of ethylene oxide.
3. Analysis of the market situation of additives: With the frequent increase in the price of ethylene oxide, the cost of polyethylene glycol products is rapidly rising. In addition, the high price of oil and fat raw materials has led to a shortage of market supply, resulting in irregular adjustments of fat raw materials. End customers are unable to accurately predict the market. Based on comprehensive analysis, due to the worsening of the epidemic and the superposition of global inflation, the rise in commodity prices remains the mainstream trend in the market.
4. Due to the continued consolidation of the upstream raw material market for the polypropylene glycol series products, downstream will follow up as needed. At present, the polypropylene glycol series products will have a weak short-term market consolidation.