Since 2017, Jiangsu and Zhejiang region ushered in the history of the most stringent environmental remediation, but the monthly production of ethylene glycol has a record high. August 2017 domestic ethylene glycol production has exceeded 500,000 tons, reaching 528,100 tons, an increase of 46.33%. The coal production of ethylene glycol reached 139,000 tons, reaching a record high, accounting for 26.32% of total domestic production.

Into 2017, there have been coal-based ethylene glycol project signing or planning news. According to the project under construction statistics, by 2021 China’s ethylene glycol production capacity will reach 17.59 million tons. Currently in the planned state of ethylene glycol production capacity of 22.36 million tons, according to all production calculation, the scale will reach nearly 40 million tons.

Behind the impulse: high profit margin is expected

Since the second half of this year, ethylene glycol prices continued to rise, as of mid-September, ethylene glycol spot prices rose over a thousand dollars, while production profits also improved significantly from the previous period. Ethylene glycol in August as an example, the ethylene method of ethylene glycol profit of 35 US dollars / ton in the vicinity, MTO line production of ethylene glycol profits in the thousand yuan / ton, coal glycol profit is in the other two On top of the product.

Ethylene glycol products, high profits also directly promote the domestic ethylene glycol manufacturers to actively improve the production of ethylene glycol products. Since the third quarter, the domestic operating rates are maintained at a relatively high level. Although some enterprises in the second quarter of the planned maintenance, and environmental protection thorough investigation led to coal enterprises to upgrade equipment and other reasons, the operating rate has declined for a short time, the remaining months operating rate remained at about 80% level, methanol ethylene glycol It is continuing on 100%.

High profits plus a huge gap in demand, the future of ethylene glycol production capacity still maintain a steady growth rate. 2017 domestic ethylene glycol is still part of the new capacity into the market, is expected to add capacity of 1.06 million tons. Coal-based ethylene glycol manufacturers is still the future of new capacity to put the main force. The future of China’s ethylene glycol highly dependent on the import situation will gradually change.