Due to a 500 yuan/ton increase in the ex factory price of ethylene oxide in East China today, our company has adjusted the prices of polyethylene glycol related products. The current market situation analysis of chemical additives is as follows:
The main reason for the frequent increase in polyethylene glycol prices is the increase in costs. Before and after the Spring Festival, international oil prices continued to rise, commodity price indices climbed, Asian ethylene rose by $200/ton, production costs of ethylene oxide increased significantly, and production enterprises suffered serious losses.
2. Potential for price increase of ethylene oxide: Based on current ethylene prices, the production cost of ethylene oxide is 9000 yuan/ton, while the current market price is only 7700 yuan/ton. Under severe losses, price increase is an inevitable process. If the market recovers faster, the price of ethylene oxide will rise faster.
3. Analysis of the auxiliary market situation: After the holiday, there is a wave of stock market recovery, and the prices of oil and fat auxiliary raw materials are high, maintaining a strong demand trend in the market performance. Due to severe losses in ethylene oxide production, efforts have been made to increase production restrictions, and some co production enterprises have increased their efforts to switch to terminal products, resulting in a shortage of ethylene oxide products.