Rising price gradient of ethylene oxide in 2024

The price gradient of ethylene oxide will increase in 2024. According to data from Business Society, as of April 19th, the average market price of ethylene oxide in China was 7000 yuan/ton, an increase of 9.38% compared to the market average price of 6400 yuan/ton at the beginning of the year.

Downstream prices are rising, and the increase in ship prices is lower than that of ethylene oxide

At present, the industrial chain is in a state of poor cost oriented transmission. Recently, the prices of the main downstream polycarboxylate water reducing agent monomers have remained stable, but the upstream raw material ethylene price has risen and remained relatively high. The cost pressure on ethylene oxide enterprises has increased, and the rising prices are transmitted to ethylene oxide. However, downstream product prices of ethylene oxide are relatively weak, making it difficult to transmit cost pressures downwards.

Device maintenance and cost factors driving up the price gradient of ethylene oxide

Since 2024, there have been frequent spring shutdowns and maintenance of ethylene oxide in China, especially in the East China region. The overlapping of device maintenance and partial enterprise operation has reduced the load. In the first quarter, the operating load of domestic devices was around 60%, which is lower than the operating rate of 68% in the same quarter last year. Some maintenance devices are as follows:

On the raw material side, due to the influence of crude oil prices, the price of ethylene has increased month on month, and the cost of ethylene oxide is strongly supported.

Future market forecast

Under the support of cost, the price of ethylene oxide may continue to remain strong, but in the later stage, with the resumption of production of early maintenance equipment, there is an expected increase in supply side pressure, with significant upward pressure and short-term fluctuations and stability maintenance as the main focus.