Recently, the polyester industry chain has undergone a sudden change, and bulk textile raw materials have experienced a rapid decline, causing widespread distress. Who would have thought that polyester raw materials would encounter such a tragic scene during the carnival at the end of last year? As the saying goes, if you stand high, you will fall badly! But in terms of ups and downs, I only take ethylene glycol. During the rising period, the daily limit is multi-day; during the falling period, the price falls by nearly 300 yuan/ton in a single day. When it comes to who is the most willful in the world, only ethylene glycol is the most willful!
Skyrocketing caused by a listing scandal
After October 2016, the news that ethylene glycol was listed on the Dalian Commodity Futures Exchange suddenly came like a spring breeze. On November 16, 2016, the Dalian Commodity Exchange announced that the China Securities Regulatory Commission had approved the listing of ethylene glycol futures on the Dalian Commodity Exchange. As for the project application, with the news of the approval of the ethylene glycol futures project, the market rose by 1.92% in a single day on Friday that week. Affected by the news, the overall market turned from sluggish to optimistic. On December 4, at the 12th China 2016 At the “Dalian Commodity Exchange Special Event” of the (Shenzhen) International Futures Conference, the ethylene glycol futures contract and draft rules debuted on the market. On the 5th of that month, the opening of the ethylene glycol center of gravity rose sharply by 3.4% and continued to rise widely, exceeding 7,000 in one fell swoop. yuan/ton mark.
The series of actions triggered by the listing of ethylene glycol futures can be said to be the main driving force for the surge. At the same time, another gust of wind blew in the market. At that time, crude oil producing countries reached an agreement to reduce production. The performance of the crude oil end also gave strong support to the overall market, which was bullish by downstream Boosted by the price increase of textile raw materials caused by various factors such as the purchase of goods and the supply and demand imbalance after the G20, ethylene glycol experienced a vertical rise after November like crazy.
The good times did not last long. Eight leading polyester companies jointly opposed it, and mainstream factories were worried about abandoning it. Market confidence was severely damaged!
However, shortly after the announcement of the listing on the futures market, eight major domestic polyester manufacturers jointly submitted a letter opposing the listing of ethylene glycol on the futures market, claiming that ethylene glycol did not meet the mature conditions for listing, and applied to the China Securities Regulatory Commission to delay the listing.
In addition, in early February, the “Investor Relations Activity Record Form” disclosed by Rongsheng Petrochemical (002493) on the Shenzhen Stock Exchange Interactive Exchange showed that the company has always regarded product quality as its life. At present, the quality of coal-to-ethylene glycol products cannot fully meet the polyethylene glycol product quality requirements. The application requirements of the ester polyester industry may bring many unknowns and uncertainties during use, and affect product quality. The company currently does not consider using coal as raw material to produce ethylene glycol. This is precisely in response to the concerns of polyester factories about incorporating coal into ethylene glycol after the listing of ethylene glycol. After that, ethylene glycol futures slowly faded out of everyone’s sight.
Judging from the current situation, polyester manufacturers have won this game, and ethylene glycol futures are gradually moving away, causing a heavy blow to market confidence.
The deep decline has lasted for one and a half months, and ethylene glycol may still have a long way to find the bottom!
The crash effect came too quickly after the skyrocketing. After the Spring Festival, dragged down by the depressed decline in the entire polyester raw material market led by crude oil, ethylene glycol no longer rose; and this situation was out of control, and the deep decline continued for nearly 1 and a half months!
As of March 23, 2017, the main contract price of ethylene glycol in the electronic trading market was 6,342 yuan/ton, a drop of 1,928 yuan/ton, or 23%, from the beginning of February. The mainstream price in East China was 6,360 yuan/ton. This deep The decline has basically given up the previous gains. Next, the decline of ethylene glycol may still be difficult to escape. As of 2 pm on the 23rd, the main contract of ethylene glycol electronic trading 1705 dropped nearly 2% from yesterday, continuing to find the bottom!
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