Ethylene glycol prices rose more than a month

Ethylene glycol prices rose more than a month Since the beginning of this year, glyphosate and disperse dyes have led the big cattle market in chemical segmentation. The Shanghai Daily reporter learned yesterday that since July, the price of ethylene glycol has reversed its previous decline, and has rebounded strongly. The industry leader Danhua Technology has improved its sales since the end of June.

The business community monitoring data shows that since July, ethylene glycol has risen to the second place in the chemical sector. From July 1 to August 8, the price of ethylene glycol rose more than RMB 800/ton, which was more than 10%. On August 8, the reference price of ethylene glycol reached RMB 8,133/ton. Analysts said that the main reason for the strong rise in ethylene glycol this time is the rise in crude oil prices, resulting in rising prices of raw materials ethylene and the outer disk, while the market supply shortage, the macro economy improved, and the downstream demand is also a catalyst.

Danhua Technology is one of the largest ethylene glycol manufacturers in China. In addition to a 200,000-ton-per-year coal-based glycol plant, it also authorizes its joint venture company’s five project companies to build a total annual output of 1 million tons. In the coal-to-ethylene glycol project, the company strives to achieve the annual target of 3 million tons of ethylene glycol. At present, the supply of ethylene glycol in the Chinese market is in short supply. The annual demand is about 10 million tons, and about 70% depends on imports.

It is understood that in 2012, Tongliao Jinmei, a subsidiary of Danhua Technology, produced a total of 101,100 tons of ethylene glycol and 49,600 tons of oxalic acid, with an average annual production load of approximately 63%, of which the production load at the end of the year has been raised to more than 85%. The UV transmittance of diol products has also been effectively solved. In the first quarter of this year, the company suffered a loss of 74.73 million yuan, which was mainly due to the decrease in output of Tongliao's gold coal due to the effects of cold weather and reduced production and troubleshooting.

The reporter learned from the company yesterday that from the end of June till now, the load of the Tongliao Gold Coal Production Plant has reached 70% to 80%, and sales have improved significantly. It is expected that with the rebound of ethylene glycol prices, the business performance of Danhua Technology is expected to turn around in the second half of the year.

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