Shouchuang Futures: Polyester chain products diverge; hold multiple ethylene glycol and PTA arbitrage for PT(A) .

Spot market, East China ethylene glycol price is 5,076 yuan/ton self-pickup, down 78 yuan/ton from the previous trading day.
On the supply side, this week’s domestic ethylene glycol total load decreased by 0.3 percentage points week-on-week, and coal-based ethylene glycol load decreased by 2.3 percentage points. Multiple coal-based ethylene glycol units are scheduled for shutdown or load reduction.
Overseas, some Iranian units have shut down or suspended exports, and Saudi units are operating at low levels. It is expected that ethylene glycol imports in March will significantly decline.
On the demand side, downstream polyester load and terminal weaving operations are gradually recovering. It is estimated that ethylene glycol will have a cumulative destocking of 550k tons from March to May.
In summary, maintenance of domestic and overseas units is still ongoing, supply is tightening, import expectations are declining, and ethylene glycol will continue to de-stock from March to May. It is expected that ethylene glycol futures will remain strong, with multiple ethylene glycol and PTA cross-commodity arbitrage positions held. Attention should be paid to changes in plant operation rates and cost fluctuations domestically and internationally. (First Capital Futures)