1. Report Industry Investment Rating - Not provided in the given content 2. Core Views of the Report - Yesterday, the closing price of the main EG contract was 5,218 yuan/ton, down 141 yuan/ton or 2.63% from the previous trading day; the spot price of EG in the East China market was 5,275 yuan/ton, down 154 yuan/ton or 2.84% from the previous trading day; the spot basis of EG in East China was 6 yuan/ton, up 6 yuan/ton month-on-month. Due to the tense situation in Iran, the expectation of reduced EG imports and increased exports has fermented, leading to a tight supply outlook and a rapid increase in the basis [1]. - According to Longzhong data, the production gross profit of ethylene-based EG was -$258/ton, down $3/ton month-on-month; the production gross profit of coal-based syngas EG was 684 yuan/ton, up 259 yuan/ton month-on-month [1]. - According to CCF data, the inventory of MEG at the main ports in East China was 1.075 million tons, up 36,000 tons month-on-month; the main ports had a slight inventory build last week. The planned arrivals at the main ports in East China this week totaled 78,000 tons, and the arrivals at the secondary ports were 5,000 tons. With the reduced arrivals, the inventory is expected to decline [1]. - On the domestic supply side, the domestic ethylene glycol load has decreased due to concerns about the stability of upstream raw material supply. Overseas, the load of overseas ethylene glycol plants has decreased significantly. After the delivery of Middle Eastern cargoes in March, there will be a phased supply gap from the Middle East in April, and the import arrivals are expected to drop significantly, making inventory reduction a reality. On the demand side, the loads of polyester and weaving have started to decline, the downstream prices have difficulty rising, the inventories of filaments and staple fibers have started to accumulate, and a negative feedback of production cuts has emerged. If the cost prices remain high, more downstream production cuts may occur [2]. - For the trading strategy, for the single - side, it is advisable to cautiously go long on hedging at low prices. Inventory reduction will start in mid - March, and the inventory reduction at ports is expected to be realized in April. Recently, the inquiries from some Asian countries to China have increased. With the low import volume and exports, the reduction of ethylene glycol social inventory will accelerate significantly. Attention should be paid to the passage situation of the Strait of Hormuz and the changes in ethylene glycol plants. For the inter - period, a long position in the 7 - 9 spread is recommended under the influence of supply. There is no recommendation for the inter - variety strategy [3]. 3. Summary According to the Directory Price and Basis - The report includes figures on the ethylene glycol spot price in East China and the ethylene glycol spot basis in East China, with data sources from Longzhong and CCF, and the research institute of Huatai Futures [1][6][8] Production Profit and Operating Rate - The report presents figures on the gross profit of ethylene - based ethylene glycol, coal - based syngas ethylene glycol, naphtha - integrated ethylene glycol, and methanol - based ethylene glycol, as well as the total load of ethylene glycol and the load of syngas - based ethylene glycol. The data sources are from Flush, Longzhong, and CCF, and the research institute of Huatai Futures [10][12][18] International Price Difference - The report shows a figure on the international price difference of ethylene glycol (US FOB - China CFR), with data from Longzhong and the research institute of Huatai Futures [21] Downstream Production, Sales, and Operating Rate - The report includes figures on the production and sales of filaments and staple fibers, as well as the loads of polyester, direct - spun filaments, polyester staple fibers, and polyester bottle chips. The data sources are from CCF and the research institute of Huatai Futures [22][25][27] Inventory Data - The report provides figures on the ethylene glycol inventory at ports in East China, including the total inventory, inventory at Zhangjiagang, Ningbo Port, Jiangyin + Changzhou Port, and Shanghai + Changshu Port, as well as the inventory days of MEG raw materials in Chinese polyester factories and the daily outbound volume at ports in East China. The data sources are from Longzhong, CCF, and the research institute of Huatai Futures [33][36][41]