BEIJING, July 12 /PRNewswire-Asia/ -- Frbiz.com, one of China's leading B2B search platforms, analyzes the ethylene glycol price situation.
Since spring, the market price of ethylene glycol has continued to decline, especially in May and early June, but after mid-June, ethylene glycol prices have gradually stabilized in the market, with the decreases becoming small, and in late June, the prices stabilized. This may mean that ethylene glycol prices have reached a low point.
An Frbiz chemical analyst said that in recent years; with the rapid development of China's polyester industry, the huge glycol gap in the market and good prospect development allows the construction of ethylene glycol units to boom. Frbiz expects that the total production capacity of ethylene glycol in China will reach around 4.2 million tons in 2010, up 55 percent over 2007.
Frbiz analyzes that inventories of ethylene glycol producers have come under increased pressure, the ethylene glycol market will limit economic concerns, the demand will decrease and valuation will decline. At the same time, May to June ethylene glycol's total degree of decline has reached 29.6%. In late June, some manufacturers stocks were in decline, thus selling pressure significantly declined, and the prices appeared to stabilize.
But from a macro perspective, the ethylene glycol market pressure has not been lifted. Textile exports fell, the textile product structure adjustment, the hot weather impact of price movements on the ethylene glycol will be a further manifestation of the third quarter. Textile control and external economy demands, which may mean glycol, polyester and textile, and lower profitable levels, will continue. The inadequate funding in the market will also mean that ethylene glycol, in the near future, will still see prices lack an upward momentum. However, considering the inflationary pressures that still exist, the policy shift control is also very difficult to achieve in the short term, and it is expected the third quarter will see the price of ethylene glycol in a smaller decrease situation, which will be fluctuating between 5,200-6,000 yuan / ton, which is not far off the bottom price.
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