December 26th – According to market rumors, a 550,000-ton-per-year ethylene glycol (EG) unit in Saudi Arabia has resumed operations and is currently running normally. It is reported that the unit had been shut down for maintenance since mid-July. Chempricehub's analysis of ethylene glycol gives a long-short score of -1. The restart of the 550,000-ton-per-year EG unit in Saudi Arabia increases global supply and is expected to exert downward pressure on spot prices. The previous shutdown of the unit had reduced supply, and its resumption raises the risk of oversupply, which is bearish for the spot market. Considering EG futures data, such as the main contract 2605 on the Dalian Commodity Exchange (settlement price of 3,819 yuan/ton, up 85), which has risen recently, this news may trigger selling pressure, leading to a correction in futures prices. The overall assessment is moderately bearish.
Comments
0