[Chemical Knowledge]：What are the factors affecting the price of ethylene glycol? Detailed analysis, the reason for the rise in ethylene glycol

Ethylene glycol price influence factors detailed analysis

Glycol (Ethylene, EG) is an important chemical raw material, which is widely used in polyester fiber, plastic, antifreeze and other fields. Its price is affected by many factors, this paper will be from the supply and demand, raw material prices, production costs, policies and regulations, international trade and market expectations and other aspects of a detailed analysis.

1. Supply and demand

1.1 supply factors

The production of ethylene glycol is mainly concentrated in China, the United States, Saudi Arabia and other countries, and the production capacity and operating rate directly affect the market supply. When new capacity is launched or existing capacity is expanded, market supply increases and prices may fall. On the contrary, when the supply is reduced due to equipment maintenance, natural disasters and other reasons, the price will rise.

1.2 demand factors

The main application areas of ethylene glycol are polyester fibers and PET plastics, and the market demand for these downstream products directly affects the demand for ethylene glycol. Demand fluctuations in industries such as textiles and beverage bottles, especially during holidays and off-season production, have a significant impact on the price of ethylene glycol.

2. Raw material prices

The main raw material of ethylene glycol is ethylene, and fluctuations in the price of ethylene are directly transmitted to ethylene glycol. Ethylene prices are affected by oil prices, production processes (e. g. steam cracking, catalytic cracking, etc.), and production plant operating rates. When the price of oil rises, the price of ethylene rises, resulting in an increase in the cost of ethylene glycol and an increase in the price.

3. Production cost

3.1 energy costs

The production process of ethylene glycol consumes a lot of energy, and the fluctuation of energy price (such as electricity and natural gas) will directly affect the production cost. When energy prices rise, the cost of production increases, and the price of ethylene glycol may also rise.

3.2 environmental costs

With the increasingly stringent global environmental protection policies, manufacturers need to invest more funds in the construction and operation of environmental protection facilities. Rising environmental costs will increase production costs, thereby driving ethylene glycol prices upward.

4. Policies and regulations

4.1 tariff policy

The tariff policy in international trade has an important influence on the price of ethylene glycol. For example, China's imposition of anti-dumping duties on imported ethylene glycol or an increase in import tariffs will directly affect the price of imported ethylene glycol, thereby affecting the domestic market price.

4.2 Environmental Policy

Tighter environmental protection policies have caused some production companies to face production cuts or shutdowns, market supply has decreased, and ethylene glycol prices may rise. In particular, enterprises with large emissions in the production process are more vulnerable to policy restrictions.

5. International trade

Ethylene glycol is a global product, and its international trade has an important impact on the price. The export policies of major exporting countries, trade barriers, international transport costs and other factors will have an impact on prices. For example, export restrictions or increased transport costs in major producing countries can lead to tight supplies in international markets and higher prices.

6. Market Expectations

Market participants' expectations of future market movements also affect current prices. Speculative buying drives up prices if the market generally expects increased demand or reduced supply in the future. Conversely, if oversupply or demand is expected to fall in the future, the market may sell and prices may fall.

7. Substitute impact

There are alternatives to ethylene glycol in some applications, such as propylene glycol, glycerin, etc. When the price of these alternatives is more advantageous or more abundant, some downstream users may turn to alternatives, reducing the demand for ethylene glycol, which in turn puts pressure on prices.

8. Technological progress

8.1 production process improvement

The improvement of production process can improve the production efficiency of ethylene glycol and reduce the production cost. For example, improvements in catalysts, the use of new reactors, etc., may result in cost reductions that have an impact on prices.

8.2 raw material substitution

If cheaper and stable raw materials can be found to replace ethylene to produce ethylene glycol, the production cost will be greatly reduced, which will affect the market price.

9. Seasonal factors

The application of ethylene glycol in antifreeze makes its demand have certain seasonal characteristics. Increased demand for antifreeze in winter will lead to higher demand for ethylene glycol and higher prices. In the spring and summer, demand is relatively reduced and prices may fall.

10. Market competition

The degree of competition in the ethylene glycol market also affects the price. When there are a large number of production enterprises in the market and competition is fierce, the price may be lower. When the market concentration is high and the monopoly phenomenon is serious, it is easier for enterprises to control prices and maintain high profits.

The price of ethylene glycol is affected by a variety of factors such as supply and demand, raw material prices, production costs, policies and regulations, international trade, market expectations, the impact of substitutes, technological progress, seasonal factors, and market competition. Manufacturers and market participants need to take these factors into account in order to more accurately predict price movements and develop sound production and sales strategies.