China's coal-to- ethylene glycol operating rate kept declining in May, with a 4.98 percentage points of week-on-week fall to an average of 37.94% observed in the week to May 14.
This came as the enterprises using coal as their feed material gradually lost their competitiveness in price when ethylene glycol prices were at low levels and on the downward trend.
The comprehensive operating rate of domestic ethylene glycol plants declined 5.08 percentage points from a week ago to 50.16% as of May 14, with the capacity under maintenance reaching 4.07 million tonnes per annum.
Rising stocks at ports in May also weighed on prices. As of May 14, combined ethylene glycol inventories increased 22,500 tonnes from 1.21 million tonnes at eastern ports, data showed.
Judging from the current maintenance situation, the domestic ethylene glycol production will drop to around 600,000 tonnes in May, but low operating rate may help to mitigate oversupply status.
Supply and demand are expected to be balanced by end-June, if low operating rate stretches into next month.
(Writing by Emma Yang Editing by Jessie Jia)
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