Galaxy Futures: Domestic ethylene glycol supply and demand structure has improved month-on-month, entering a destocking pattern in the second quarter.

Due to domestic raw material supply constraints, the operating rates of domestic ethylene cracking-to-ethylene glycol companies have declined to varying degrees. As of now, we understand that companies in regions including Zhejiang, Jiangsu, Hainan, and Fujian are all involved to some extent, and the load at oil-based ethylene glycol plants in most cases has fallen. For syngas-based Yulin Chemical and Yueneng Chemical, both will carry out turnarounds as planned, and as spring inspection approaches, there is an expectation that syngas-based operating loads will decline. With the Strait of Hormuz being affected in the Middle East, the April import volume of ethylene glycol is expected to be reduced significantly. The ethylene glycol supply-and-demand structure is expected to improve month over month, and the second quarter will enter a destocking pattern. (Galaxy Futures)