Core Viewpoint - The ethylene glycol market experienced significant price fluctuations this week, with a notable shift in supply and demand dynamics, influenced by macroeconomic factors and production adjustments in the polyester sector [1] Price Movement - Ethylene glycol prices surged to around 4705 RMB/ton before retreating, with the spot basis briefly rising to a premium of 200 RMB/ton for the September contract [1] - By the end of the week, prices adjusted downward due to falling crude oil prices and reduced polyester production, leading to a weaker spot basis of 70-75 RMB/ton for the September contract [1] Supply and Demand Dynamics - Overall operating rate for ethylene glycol in mainland China was at 60.51%, with the oxalic acid catalytic hydrogenation method operating at 60.04%, a decrease of 6.71% week-on-week [1] - Planned maintenance and production cuts at major producers like Hengli Petrochemical and Shenghong contributed to a lower operating rate, improving the supply-demand structure [1] Polyester Production and Inventory - Jiangsu and Zhejiang weaving machine operating rates increased to 68.0% (+3.0% week-on-week), with texturing rates at 80.0% (+3.0%) and polyester operating rates at 95.00% (+0.80%) [1] - Inventory days for POY, FDY, and DTY decreased, indicating a tightening supply situation [1] Macroeconomic Factors - Positive developments in US-China negotiations and a rebound in macroeconomic sentiment have led to improved demand for textile orders, with a notable decrease in long filament inventory [1] - The expected increase in polyester production in May may exceed market expectations, indicating strong short-term demand [1] Inventory Levels - MEG inventory at East China main port was reported at 751,000 tons (-39,000 tons week-on-week) according to CCF, and 664,000 tons (-28,000 tons week-on-week) according to Longzhong [1] - A total of 55,000 tons of imports are planned for next week, with expectations for continued inventory decline [1] Market Strategy - The market outlook is cautiously bullish in the short term, supported by macroeconomic factors and strong demand, despite potential risks from crude oil price fluctuations and coal price volatility [1]