ShouChuang Futures: Energy prices decline, ethylene glycol futures adjust at high levels

In the spot market, the price of East China EG is 5,177 yuan/ton for pickup, down 252 yuan/ton from the previous trading day. On the supply side, domestic EG total operating rates last week were 57.97%, a slight decrease month-over-month. In the East China main port area, total MEG inventory was 952k tons, an increase of 31k tons month-over-month. On the overseas front, some Iranian units have shut down or paused exports, Saudi units are running at a low level, and in the next phase EG import volumes may fall significantly. On the demand side, filament plants have increased production cutbacks, and polyester and downstream textile weaving operations have declined somewhat. Overall, given the impact of the geopolitical situation, overseas units’ turnarounds are still ongoing and import expectations have declined. However, Trump’s remarks have disrupted energy prices, with crude oil and coal prices falling. Volatility on the cost side is relatively high, but the supply-and-demand fundamentals still have support. It is expected that in the short term EG futures prices will trade in a high-range consolidation pattern; watch developments in the geopolitical situation, changes in operating rates of domestic and overseas units, and cost movements. (Founder Futures)