Huatai Futures: Ethylene glycol supply decreases, demand weakens, and inventory reduction expectations strengthen

Domestic supply side, due to concerns over the stability of upstream raw material supply, domestic ethylene glycol utilization rate has decreased; in terms of overseas supply, recently overseas ethylene glycol plant utilization rates have declined more noticeably. As Middle Eastern vessel shipments are completed in March, the Middle Eastern source of goods will face a phased disruption in April, and the imported port volume is expected to decline significantly, making destocking feasible. On the demand side, polyester and weaving utilization rates have begun to decline, downstream prices are struggling to follow the rise, and inventory of long filament and short fiber has started to accumulate. Negative feedback from production cuts has appeared. If the cost-side prices remain high, downstream production cuts may further increase. (Huatai Futures)